Coinbase Global Inc (NASDAQ: COIN) stock price is trading with bearish cues and bears are trying to pull the prices below the 50 day EMA to create fear in the mind of long term investors. However, the prices are near to the demand zone and expected to consolidate for some time before deciding the further direction. In the previous session NASDAQ: COIN stock price closed at $62.07 with the intraday loss of 4.80%
Will coinbase stock bounce back from support level?
On a daily time frame, Coinbase Global Inc (NASDAQ: COIN) stock price is in a recovery mode and is trying to rise upward by forming a bullish reversal pattern to bring back the confidence of its long term investors.
In the beginning of the January, Coinbase stock price took support at $31.00 and takes a sharp U-turn which triggered the positive sentiment and bulls succeed to push the price above the 50 day EMA indicating that the short term is reversed in the direction of bulls and prices shot up 76% approx in a short period of time. However, recently prices took a halt near the 200 day EMA at $87.00 and faced strong rejection from the higher levels showing that bears are active at the supply zone and it will be difficult for bulls to dominate on the higher zones.
Meanwhile, the prices retested the 50 day EMA and gave a sharp bounce back but unfortunately overall market sentiment turned negative and prices lacked the follow up movement. The technical indicators of the stock like MACD had generated a negative crossover indicating more downside is possible in coming days whereas the RSI at 50 sloping denotes that the bulls are lacking strength and prices might remain weak for some time. However, if downward momentum continues in coming sessions then $50.00 will act as immediate support level and if price slips below $50.00 then bears might drag the price further down toward $30.00 level
Summary
Coinbase Global Inc (NASDAQ: COIN) stock price has attempted to break out of the 200 day EMA but got strong rejection shows that bears are active at higher levels and positional trend still remains in the bear grip. The technical analysis suggests that till prices trades below the 200 day EMA, the probability of reaching $100.00 mark is less but if in coming months bulls are able to push the price above EMA then we may see a surprising rally towards $100.00
Technical levels
Resistance levels : $87.00 and $100.00
Support levels : $50.00 and $31.00
