Coinbase stock has potential to double in 2022 after plunging 90% from all-time high
COIN stock may hit $160 by year-end, based on a mix of technical and fundamental indicators.< /p>
Market analysis
Coinbase (COIN) stock price has nearly doubled since its June lows with much greater upside potential this year, according to a mix of technical and fundamental indicators.
The reversal of COIN's symmetric triangleCOIN underwent a strong bullish reversal after falling nearly 90% from its all-time high of $368.90 in November 2021.
Coinbase's stock price rose more than 95% to $75.27 at the July 20 close, measured from its local low of $40.83 on May 12. Its recovery led to the formation of a symmetrical triangle pattern, with the price forming a sequence of higher highs and lower lows.
Symmetrical triangles in a downtrend usually turn out to be bearish continuation patterns. They resolve after price breaks below their lower trendlines to continue lower. But in rare cases, a symmetrical triangle can form at the end of a downtrend, leading to sharp bullish reversals.
As it seems, COIN has already entered the breakout phase of its symmetrical triangle reversal pattern. Notably, Coinbase stock closed above the upper trendline of the structure on July 28 while accompanying an increase in trading volume, as shown below.
Daily COIN price chart with coin configuration symmetrical triangle inversion. Source: TradingViewCOIN is now testing $80 as interim resistance while eyeing a further rise towards $135. The profit target is measured after calculating the maximum distance between the upper and lower trendline of the symmetrical triangle and adding the result to the breakout point.
The upside target of the triangle appears closer to COIN's 200-day exponential moving average (200-day EMA; the blue wave in the chart above) near $153. This psychologically increases the possibility of COIN forming bullish wicks towards $153 if it reaches $135 this year.
That would mean a 102% rally from today...
COIN stock may hit $160 by year-end, based on a mix of technical and fundamental indicators.< /p>
Market analysis
Coinbase (COIN) stock price has nearly doubled since its June lows with much greater upside potential this year, according to a mix of technical and fundamental indicators.
The reversal of COIN's symmetric triangleCOIN underwent a strong bullish reversal after falling nearly 90% from its all-time high of $368.90 in November 2021.
Coinbase's stock price rose more than 95% to $75.27 at the July 20 close, measured from its local low of $40.83 on May 12. Its recovery led to the formation of a symmetrical triangle pattern, with the price forming a sequence of higher highs and lower lows.
Symmetrical triangles in a downtrend usually turn out to be bearish continuation patterns. They resolve after price breaks below their lower trendlines to continue lower. But in rare cases, a symmetrical triangle can form at the end of a downtrend, leading to sharp bullish reversals.
As it seems, COIN has already entered the breakout phase of its symmetrical triangle reversal pattern. Notably, Coinbase stock closed above the upper trendline of the structure on July 28 while accompanying an increase in trading volume, as shown below.
Daily COIN price chart with coin configuration symmetrical triangle inversion. Source: TradingViewCOIN is now testing $80 as interim resistance while eyeing a further rise towards $135. The profit target is measured after calculating the maximum distance between the upper and lower trendline of the symmetrical triangle and adding the result to the breakout point.
The upside target of the triangle appears closer to COIN's 200-day exponential moving average (200-day EMA; the blue wave in the chart above) near $153. This psychologically increases the possibility of COIN forming bullish wicks towards $153 if it reaches $135 this year.
That would mean a 102% rally from today...
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