Coinbase Stock Price Soars 142% in Five Weeks: Is this Rally Sustainable?

The Coinbase stock price has experienced an incredible surge over the past five weeks, displaying parabolic growth in the daily time chart. Starting from June 6th low of $46.3, the coin’s value has skyrocketed to its current price of $114, representing an astounding growth of 142%. This bullish rally can be attributed to the development of a bullish reversal pattern called double bottom and the ripple effect caused by the recent surge in the 5th largest cryptocurrency-XRP. Can buyers continue this rally longer or is it time for sellers to enter?

Also Read: Coinbase Stock Defies Lawsuit And Crypto Winter; $COIN Price Shoots By 16%

Coinbase Price Daily Chart

• Profit booking from short-term investors could trigger a minor correction in the COIN price
• The potential pullback could witness strong support at the $100 psychological mark
• A potential golden crossover between the 50-and-200-day EMAs could bolster the buying pressure

Source-Tradingview

Amid the recent rally, the Coinbase stock price reclaimed some crucial chart levels such as $71.8, $85.5, and $98.7. The bull rally back by increased volume indicates buyers’ conviction to lead sustained growth.

However, it seems, the COIN price has already witnessed a significant rally in a short period and any further growth is likely until some new positive news has spread. By the press time, the stock price trades at the $105 mark, and the long-rejection wicks attached to the daily reflect the overhead supply pressure.

This rejection indicates this asset may witness a post-rally correction to replenish the exhausted bullish. At such time, the reclaimed level mentioned above could act as suitable support to restart a bullish recovery.

How Far Can the COIN Price Correct?

With a high selling pressure present at $114, the Coinbase stock price is poised for a minor retracement. As per the Fibonacci retracement level, the $100-98.7 support aligned with the 23.6% FIB level stands on solid footing to sustain higher prices. In case of a longer correction, the stockholders can expect demand pressure at $88.45(38.2% FIB), followed by $80(50% FIB).

• Bollinger band: The COIN price challenging the upper ceiling of the Bollinger band indicator, suggests the bullish momentum is aggressive.
• Relative Strength Index: The daily RSI slope entering the overbought region indicates the requirement of a minor correction.