Price Of Coinbase Stock Surges By 142% in Five Weeks
Coinbase exchange today has seen a spectacular increase in its stock value over the previous five weeks. The stock has grown astonishingly by 142% since reaching as low as $46.3 on June 6th; it is now trading at $114. The sustainability of such a significant upward trend has been a concern among investors and analysts following this amazing surge.
According to technical analysis, Coinbase stock investors should look for demand pressure near the $88.45 level, corresponding to the 38.2% Fibonacci retracement. A second support level could be found at the $80 level, corresponding to the 50% Fibonacci retracement. If a downturn happens, these price levels might pique buying interest and limit the downside.
The probable golden crossover between the 50-day and 200-day Exponential Moving Averages (EMAs) is a promising sign for Coinbase’s stock price. This technical indication could accelerate the stock’s upward trajectory by pointing to more purchasing pressure. Crossovers are frequently interpreted by investors as a bullish indicator, suggesting the possibility of future price growth.
Analysis from CoinGape’s Brian Bollinger states that solid support is anticipated near the psychological level of $100 on the downside if a pullback happens. This important milestone may draw buyers who missed the earlier rise because it is a round number with high psychological value. The $100 level may be a critical support level for a price correction.
Coinbase’s stock price currently trades at about $105, and the daily chart displays long-rejection wicks. Chart from these wicks represent the selling interest at higher price levels and point to overhead supply pressure. This selling pressure could stop the stock price from rising further right away.
Circumstances Surrounding The Surge Explained. Bitcoin, Ethereum, Others Fingered
Bitcoin and Ethereum have accounted for a sizable share of the exchange’s trading activity hence, linked to the substantial impact on Coinbase’s stock price. Regulatory actions and market perceptions have also been linked to the latest development.
Also, while commenting on this, Bollinger said that investor enthusiasm may be dampened, and the strength of the stock’s rally may be affected by increased regulatory scrutiny or unfavorable public perception of digital assets.
Another industry expert, Jack Denton, from BARRON’S, explained that technical indicators and probable support levels suggest the probability of a correction or pullback, but a potential golden crossover and psychological support at $100 could increase purchasing pressure.
Denton, however, added that the longevity of this rise depends on several variables, including the state of the cryptocurrency industry and any legislative changes. The latest stock price, as at press time, had regained critical level at $71.8, $98.7, and $85.5. this, Bollinger say signifies buyers’ trust in the stock to lead a sustained market growth.
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