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Coinbase's Rally Still Has Legs, Chart Analyst Says

source-logo  coindesk.com 05 December 2023 08:53, UTC

Shares in Nasdaq-listed cryptocurrency exchange Coinbase (COIN) have surged nearly 300% this year, outperforming leading cryptocurrency bitcoin (BTC) by a significant margin. Per Fairlead Strategies, further gains could be in the offing, as COIN is on track to confirm a long-term base pattern breakout.

Basing involves an asset consolidating in a price range for a prolonged time following a significant sell-off. The energy built up during the consolidation is unleashed in the direction in which the base is breached, that is, to the higher side, in case of a bullish breakout.

“COIN is likely to confirm a long-term base breakout this Friday above near $116 resistance. The breakout is a positive long-term development, suggesting the primary trend has shifted higher,” Fairlead’s analysts team, led by founder and managing partner Katie Stockton, said in a note to clients Monday.

According to analysts, the base breakout has opened doors for a rally toward resistance at $160 and potentially $200.

The chart shows COIN crashed in the first half of 2022, subsequently entering a 15-month-long base formation between $30 and $116.

Last week, prices moved past $116, the upper end of the base pattern, signaling a breakout. The bullish development will be confirmed, assuming prices hold above the said level this Friday. Traders often look for consecutive weekly or daily closes above resistance to confirm breakouts.