COIN stocks are in danger of another crash by September and it could tumble to $21 in the next few months after the insider trading allegations and the weak technicals so let’s read more today in our latest Coinbase stocks news.
The coinbase COIN stocks are in danger after they bounced slightly to $57 after shedding more than 20% in the past week but more downsides are likely despite the release of the first installment of the BAYC featured movie called the Degen Trilogy. COIN is down by 83% since the NASDAQ debut in 2021 with more losses possible due to the weak fundamentals and the bearish technicals.
COIN reached $79 on July 20 only a few days after breaking out of the ascending triangle pattern and as a rule COIN’s profit target was near $120 and up by over 130% from the July 27 price. The stock’s bullish reversal stopped midway after hitting $79 mired by back-to-back negative prices. COIN’s correction started in the wake of the broader retreat in the market that was led by Bitcoin but then the downside picked up momentum after the US Authorities arrested a former Coinbase manager on insider trading allegations.
The biggest selloff during the correction came a few days ago after Bloomberg reported that the SU SEC is investigating Coinbase for listing unregistered securities. Cathie Wood’s ARK Investment Management sold more than 1.4 million out of 9 million Coinbase shares. COIN dropped by 21% to $52.93 while testing the triangle upper trendline as support and in the process, COIN wiped out the entire bullish reversal breakout move.
The ascending triangles are often a continuation pattern and therefore COIN risks facing more losses in the next few days if it moves back inside the ascending triangle range. On the daily charts, dropping below the upper trendline could have COIN test the lower trendline near the $45 level. Such a bearish move will push the stock to the level at an equal length to the maximum distance between the upper and lower trendline of the triangle. COIN stock prices could drop to $21 almost 60% lower than the July 27 price.
The shares in BTC-adjacent companies like Microstrategy and Coinbase are dropping as of Tuesday. Coinbase stocks fell by 16% in the aftermath of the reports that the US SEC probed the exchange over listing unregistered securities on the platform. The shares changed hands at $67.07 during the closing bell on Monday and dropped to $62 on Tuesday and then went down to $56.35. After the closing Monday session, Microstrategy stocks were down by 7% in the premarket trades and got down by 9.94% to $239 at the time of writing.
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