Coinbase (NASDAQ: COIN) stock price continued to rally on Wednesday despite a pullback in the Bitcoin price. The leading digital asset failed to break above its monthly highs and traded at $37,777 at press time. However, the stock of the biggest US crypto exchange still extended its gains.
The latest technical analysis reveals that the shares of Coinbase have the tendency to retest $150 in the coming weeks. The price action seems to be driven by a potential approval of a Bitcoin spot ETF as well as the recent regulatory action against the Binance exchange.
After the SEC’s crackdown against Binance, which resulted in the exit of the exchange’s CEO, the demand for COIN has significantly increased. The impact is evident from the recent breakout from the high timeframe range.
I identified the $40-$115 trading range for Coinbase stock price about a year ago. At that time, most analysts were expecting lower price targets for the stock. However, I avoided a bearish stance until a breakdown below $40. This indeed proved to be the bottom for the stock, which is now targeting the next resistance level of $150.
However, it first needs to clear the supply, which might appear above the $138 level. The invalidation of this outlook would be another breakdown below $115.
