Coinbase Stock Price Forecast: This Could Be A Good Short Opportunity
I still stand behind my previous Coinbase (NASDAQ: COIN) stock price prediction. In that analysis, I discussed the probability of the price retesting the range lows around $40. Even though the price is apparently showing some resilience, it is yet to hit my invalidation level.
After closing 1.99% higher on Tuesday, Coinbase shares fell 0.59% in the pre-market session on Wednesday. For the past two weeks, there hasn’t been any significant move in the stock price as the price kept hovering around the middle of the long term trading range.
The stock of the biggest crypto exchange in North America spiked at the start of this week amid fake news about spot Bitcoin ETF approval. Even after the news was debunked, the stock still continued to catch some bids. However, it still struggled to break above the $78 level which I mentioned in my previous analysis.
According to the latest Coinbase news, the cryptocurrency exchange has seen a decline in trading volume in the third quarter. The latest Berenberg revealed that the volume fell 17% on a MoM basis. The YoY drop was even bigger at 52%. This suggests that the demand for cryptocurrencies has fallen among the Americans.
Coinbase Stock Price Outlook
You must be tired of looking at the following NASDAQ: COIN chart again and again. This is because, unlike most analysts, I like to analyze the stock on a higher timeframe. This gives a much clearer picture than the short term analysis. As I stated in my last article, my Coinbase stock price forecast has flipped bearish since a rejection from the range highs in July.
Since September, the price has been hovering around the middle of the trading range without gaining any strength above the key level. A retest of the range lows around $40 will remain the most likely outcome until a breakout above $86 resistance.