Welcome to Extreme Investor Network, where we provide you with the latest insights and analysis on the world of investing. Today, we are looking at Coinbase, the popular crypto exchange operator, and the potential warning signs that analysts are pointing out.
Coinbase recently experienced a six-day-long advance, finishing almost 1% higher at $171.68 per share. This rally marks its longest string of gains since early March, around the time when bitcoin reached an all-time high. However, technical analysts are now concerned as Coinbase’s 50-day moving average crossed below its 200-day moving average, signaling a potential downside risk.
Rob Ginsberg, a macro strategist at Wolfe Research, believes that Coinbase looks “very toppy” and could revisit recent lows of $146, with a potential slide to $115. Senior analyst Will Tamplin at Fairlead Strategies also highlights the lagging indicator of the death cross, indicating negative momentum and the risk of a breakdown.
Despite stabilizing support near $165, Tamplin warns of a potential continuation lower, with the next major support level around $128. Coinbase’s performance for the year has been lackluster, falling into a downtrend and underperforming relative to bitcoin since July.
Analyst Owen Lau at Oppenheimer attributes this underperformance to the lack of price action and volatility in bitcoin, along with muted trading volume on crypto exchanges. However, Lau suggests that trading volume could surge if interest rates decrease further and bitcoin revisits its all-time high.
Bitcoin has been trading in a range between $55,000 and $70,000 for most of the year, currently around $64,000. Tamplin anticipates that short-term overbought conditions could pose a challenge, keeping bitcoin within this year’s range.
At Extreme Investor Network, we keep a close eye on trends and developments in the investing world, providing you with valuable insights to make informed decisions. Stay tuned for more updates on Coinbase and other investment opportunities.