Coinbase (COIN) stock price is trading 31.65% below its yearly high. The stock of the biggest digital asset exchange in the United States is facing headwinds from regulatory scrutiny. Technical analysis predicts more downside for the stock in the coming weeks.
On Wednesday, the US stock market experienced a strong negative sentiment. The benchmark S&P 500 and Nasdaq 100 indices fell 31 and 137 points, respectively. The downtrend could be attributed to the weak PMI data from China. However, Coinbase stock remained green and closed Wednesday after gaining 0.7%.
Coinbase Launches Institutional Lending Platform
As per the latest news, Coinbase has launched a lending platform for US institutions. The institutional-grade platform will be a part of the existing Coinbase Prime and has the same operating entity as Coinbase Borrow. Since its launch on August 28, $57 million has already been invested in the protocol.
In other news, Cathie Wood’s Ark Invest has filed for a spot Ethereum ETF. The firm has also filed for a spot Bitcoin ETF, which is awaiting approval from the Securities and Exchange Commission (SEC). Analysts are expecting approval of a spot Bitcoin ETF in the next couple of months.
Coinbase Stock Price Forecast
NASDAQ: COIN chart clearly shows a rejection from the range high of $116. I accurately predicted this retest in my previous forecasts. After a rejection, the stock is heading towards the range mid of $68.75. Just below this level, there also lies the 200 MA at $63.
Coinbase stock price prediction will flip extremely bearish if the bulls fail to hold the price above the middle of the trading range. In this case, a retest of the range lows around $40.75 will be on the cards. Since Coinbase is one of the biggest cryptocurrency exchanges in the world, its stock also shows a very strong correlation to the Bitcoin price action.
I’ll keep posting my updated Coinbase analysis and my personal trade setups on Twitter, where you are welcome to follow me.
