Coinbase stock chart: there is good news

Crypto history has been decidedly bearish in 2022, although that’s not unusual given the state of the stock market.

The Nasdaq has now suffered a larger peak-to-trough decline than during the Covid-19 selloff in Q1 2020, while bitcoin is hitting multi-year lows and suffering one of its biggest declines.

As bitcoin continues to crash (and potentially enters a major support zone), Coinbase (PIECE OF MONEY) – Get the Coinbase Global Inc report has a positive view: it has not made new lows in motion.

In other words, while cryptocurrencies and US stock markets are hitting new lows, Coinbase surprisingly isn’t. This is even after the news this morning, which includes a demotion, job cuts and a warning from the CEO about a “crypto winter”.

That shouldn’t cloud the reality that the stock is down 88% from its all-time high, and at the low it was down more than 90% from peak to trough.

But right now, good news is better than none.

Trading Coinbase Stocks

Coinbase stock daily chart.

And even so, we can’t lose sight of the fact that the one small silver lining for Coinbase stock — that it hasn’t hit new lows amid fresh crypto and equity lows — might disappear in an instant.

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This would happen if it trades below the $40.83 mark, which it hit last month.

Although it traded lower for five consecutive sessions on Tuesday, it continues to hold on to the $50 zone. But a break of Monday’s low (and so far, this week’s low) at $46 could open the door to an all-time low.

If so, then bulls should be on the lookout for a potential reversal. This is all the more true as Bitcoin and Ethereum are close to support.

Barring a break below $40.83 and an upward reversal, bulls should be cautious with Coinbase shares at or below this level. Even though it would be down about 90% from the highs, that doesn’t mean it can’t get worse from here.

On the upside, a number of potential resistance zones appear, but none more immediate than $63 to $66. Within this area, Coinbase stock finds its 10- and 21-day moving averages, as well as the daily VWAP measurement.

If it can break through this zone, then the $83.32 level is in play – the May 31 high – followed by a potential push to $100 and the 50-day moving average.

I know a gathering in this area sounds crazy – and maybe right now it is.

But the reality is that Coinbase stock could double current levels at $100 and still down 76.6% from the high, 60% YTD and 33.3% from the Q1 low.

This puts into perspective how badly this stock has suffered.

Karen J. Nelson