After briefly topping a market cap of >$100 Billion on opening day, shares in Coinbase Global Inc. continued the descent on Friday, the 5th straight daily decline.
COIN shares finished the day at $291.60, a decline of $1.85 per share (-0.63%).
The highly anticipated public listing debuted on the New York Stock Exchange (NYSE) to much fanfare on the 14th of April. It was one of the more event-filled first days of trading the market had seen for some time. As trading commenced, the first deal shares changed hands at $388.98 per share.
In a flurry of buying excitement, the Coinbase price soon broke out to the upside, hurdling $400 per share before hitting an Intraday high of $428.93. Sadly for bulls, the momentum faded only to reverse lower, finishing the opening day -15.6% lower. This was some $60 below the opening print.
What now for the Coinbase price?
Given the lack of historical data, it’s tricky in predicting whether the stock is now a good long-term buy after the recent decline. The simple fact is we don’t have enough to go on to make an informed trading decision.
The hourly chart shows a clear descending trend channel which suggests the Coinbase price may continue to lose value. Resistance should be seen at the upper band of this channel at $311, with support towards the lower band at $275.
The negative outlook becomes defunct on a close above the upper band. A close above this level could see an extension to $326 per share. A continuation of a bullish break-out targets the $445 high of April the 16th.