Coinbase - More downside is likely

The downtrend in cryptocurrencies supports a bearish view on Coinbase, which is currently down more than 80% since it started to float on the public stock market just a few months ago. In our opinion, the company will continue to lose its value in the short-term and medium-term. Indeed, we think the recent fallout with the Luna stablecoin token and Celsius network will have a contagious effect that will eventually catch up with other industry giants and possibly also Coinbase. Due to that, we would like to set the price target for Coinbase at 50 USD.

Illustration 1.01

The picture above shows Coinbase stock trading within the wide range; interesting is that this trading range is structurally similar to the range observable in the price of Bitcoin and other cryptocurrencies.

Technical analysis - daily time frame
RSI, MACD, and Stochastic are slightly bullish. DM+ and DM- are neutral. Overall, the daily time frame is slightly bullish/neutral.

Illustration 1.02

Illustration 1.02 portrays similarities between the price action of BTCUSD and Coinbase.

Technical analysis - weekly time frame
RSI and Stochastic are bearish. MACD is neutral . DM+ and DM- are bearish. Overall, the weekly time frame is bearish.

Please feel free to express your ideas and thoughts in the comment section.

DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.

Trade closed manually:

Coinbase stalled at 50.34 USD, shy 34 cents of our price target. Due to that, we abandon our price target.