Coinbase's Rally Still Has Legs, Chart Analyst Says

Shares in the cryptocurrency exchange have rallied nearly 300% this year, and the latest chart pattern suggests further gains could still be in the offing.

AccessTimeIconDec 5, 2023 at 8:42 a.m. 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.

COIN looks north with the weekly chart hinting at long-term bullish revival. (TradingView)
COIN looks north with the weekly chart hinting at long-term bullish revival. (TradingView) (TradingView)

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.

Edited by Parikshit Mishra.


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Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.

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