Coinbase Global, Inc COIN found itself down about 2.7% on Friday, a slight dip echoing whispers of financial fatigue after a resounding surge post-earnings. The stock now tiptoes through a tapestry of consolidation, marked by dwindling volumes etched delicately on the daily chart.
The afterglow of Coinbase’s robust post-earnings rally prompted some shrewd traders and investors to cash in their chips, sensing an impending need for stillness amidst the rising tumult. Notably, on a Wednesday tinged with acumen, the illustrious Cathie Wood-led Ark Invest decided to untether itself from 40,683 shares of Coinbase, a strategic maneuver executed through the ARK Innovation ETF ARKK and the Ark Fintech Innovation ETF ARKF, setting afloat a transaction valued at a cool $6.6 million.
The cryptocurrency realm mirrors Coinbase’s reflective stance, with Bitcoin and Ethereum also waltzing in the wings of consolidation. Like celestial bodies aligning in cosmic harmony, these cryptos too seem to etch out patterns akin to bull flags on their daily charts, hinting at forthcoming surges that pierce through the digital sky.
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Daring traders and investors seeking to ride the Coinbase wave cautiously but with a dash of diversification might find solace in AXS 2X Innovation ETF TARK. This actively managed double-leveraged ETF harbors ambitions of returning a flamboyant 200% of the daily performance of the Cathie Wood-helmed ARK Innovation ETF, with Coinbase reigning as the marquee attraction. It claims a weighty 9.77% within ARKK’s illustrious holdings, a lofty perch second only to Tesla’s 7.91% stake.
On the converse track, traders summoning forth a bearish undertow on Coinbase could find refuge in the AXS Short Innovation Daily ETF SARK, an actively managed craft striving to traverse inversely the daily strides of ARKK and its medley of securities.
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The Coinbase Chart: Tracing the trajectory of Coinbase unveils a zenith perched at $193.64 on Feb. 16, serving as the apogee before the stock gently gravitated towards the heart of consolidation. The spirited ascent between Feb. 7 and Feb. 16, now coupled with the serene descent of consolidation, paints Coinbase in the hues of a possible bull flag pattern on the daily canvas.
- The calculated leap upon a breach from the flag’s downward slope, accompanied by a crescendo of volumes, projects a movement upwards of about 70%. This suggests the stock might navigate towards the cosmic realm of $273 at a juncture in the timeline.
- If Coinbase were to veer beneath the comforting embrace of the eight-day exponential moving average amidst the flag’s descent, the bull flag would retreat into obscurity, paving the way for a downtrend to gain foothold. Should this scenariounfold, the zenith of Thursday will be etched as a somber milestone, affirming the genesis of a new pattern.
- Coinbase finds pillars of resistance above at $177.45 and at $191.48, while a comforting embrace of support awaits below at $162.20 and at $140.53.
Photo by Sean Pollock on Unsplash
