Coinbase at a Crossroads: Rally to $340 or Drop to $100?**NASDAQ: COIN (COINBASE) 1W/1D**
On the **Weekly timeframe**, :
In my previous analyses ( ) the Golden Cross on the daily moving average was noted, indicating bullish momentum at the time. The price was in a Rising Wedge formation, a pattern often signaling an upcoming downward move, especially in the context of an Elliott Wave count where we were in Wave 3. This strong upward movement at the time allowed for further rises, but also warned of a possible correction in the form of Wave 4.
Now, a few months later, after reviewing the chart, I have slightly extended Wave 3, in which this impulsive wave also displays a clean 1-2-3-4-5 pattern. The previously mentioned correction has been in play. The price is currently at the support line of the earlier Rising Wedge. The question now is whether Coinbase can bounce back again or whether further decline towards the underlying #fibonacci levels will follow.
**On the Daily timeframe**, :
We can see that the downward correction, which began in July 2024, has reached a bottom around $146, fitting within the larger correction from the weekly analysis. The price now appears to be recovering slightly towards the #ema 50 at $187.67, which is a resistance level. The momentum is supported by a strong #stoch, but it is currently in the overbought zone, indicating a potential cooling off. Key levels to watch are the #fair-value-gap around $187 and $216. If the price breaks through these resistance levels, it could lead to further upward movement towards $240, ultimately completing Wave 5 towards $340. However, if momentum decreases, a fallback towards the previous bottom at $146 or the psychological $100 remains possible.
**Conclusion:**
Although there is room for further rises towards $240 and eventually $340, signals such as the overbought #stoch and proximity to resistance levels also point to a potential cooling off. If momentum decreases, the price could retreat to previous lows around $146 or even towards the psychological level of $100.
**Resistance levels:**
- $187 (#ema 50)
- $216 (#fair-value-gap)
- $240 (resistance line from the rising wedge formation)
- $340 (Wave 5 target)
**Support levels:**
- $146 (previous bottom)
- $100 (psychological level)
*Disclaimer: This is not financial advice. Always do your own research and carefully assess your risks.*
