This is a brief continuation of our Coinbase (COIN) price analysis from 4/22/21. In the previous post, we were watching a newly developed falling wedge with an apex at around the $280-$290 range.
The stock market took a hit Thursday after President Biden hinted toward raising the capital gains tax on those making $1M or more but quickly recovered on Friday and finishing the week somewhat neutral.
Coinbase stock however broke the wedge early to the downside and is now forming a larger wedge or potential downward channel. Remember, since this is a new stock, we don’t have much price data to work with.
Using various projection tools of the genesis downward impulse from the highs of $410 to support around $327, we find confluence around the $250 region, which is considered to be the reference price for Coinbase.
If this new wedge continues to play out (second white dotted line) we can look for a new apex around this area of confluence. If the new wedge line was to break, we could potentially form a downward channel using a symmetrical line from the downtrend connected to the low of the opening day. This also gives us a target around $250.
It will be interesting to see how things unfold next week as buyers on the sidelines look for an accumulation pattern indicating a potential floor. Those looking to dollar cost average Coinbase stock for the long haul might find great buying opportunities at the major psychological numbers $275, $250, $225.