The stock price of Nasdaq-listed cryptocurrency exchange Coinbase has soared nearly 300% this year, far outpacing Bitcoin (BTC), the largest cryptocurrency. According to technical analysis research firm Fairlead Strategies, Coinbase has the potential for further upside as momentum confirms a breakout of its long-term base pattern.
Base means that an asset remains in a price range for an extended period of time after a significant sell-off. In the case of a bullish breakout, the energy stored during the consolidation is released in the direction of the breakout of the base, i.e. to the higher side.
“Coinbase stock is likely to break above resistance around $116 this Friday, confirming a breakout on a long-term basis. A breakout is a positive development over the long term, with the main trend to the upside.” “This suggests a shift to a broader market,” Fairlead’s analyst team, led by founder and managing partner Katie Stockton, said in a Dec. 4 note to clients.
According to analysts, a breakout in the base opens the door for a rally towards $160 and then $200 resistance.
According to the chart, Coinbase stock crashed in the first half of 2022 before entering a 15-month base between $30 and $116.
Last week, the price rose above the upper end of the base at $116, suggesting a breakout. A bullish development will be confirmed if the price breaks above this level this Friday. Traders often think that a breakout is confirmed when weekly or daily closing prices rise above resistance.
｜Translation: CoinDesk JAPAN
｜Edited by: Toshihiko Inoue
｜Original text: Coinbase’s Rally Still Has Legs, Chart Analyst Says