Chart Analyst Predicts Continued Rally for Coinbase

• Significant Surge in Coinbase Shares Outperforms Bitcoin
• Understanding Basing and Pattern Breakout
• Implications of the Base Breakout
• Understanding the COIN's Price Movements

Significant Surge in Coinbase Shares Outperforms Bitcoin

Coinbase (COIN), a cryptocurrency exchange listed on Nasdaq, has seen its shares rise to nearly 300% this year. This remarkable surge has significantly outpaced the leading cryptocurrency, bitcoin (BTC). Analysis from Fairlead Strategies suggests that this upward trend is set to continue, with COIN poised to confirm a breakout from a long-term base pattern.

Understanding Basing and Pattern Breakout

Basing is a term used to describe a scenario wherein an asset consolidates within a specific price range for an extended period following a substantial sell-off. The energy accumulated during this consolidation period is then released in the direction of the base's breach, often upward, indicating a bullish breakout.

In its recent client note, Fairlead Strategies' analysts' team, led by founder and managing partner Katie Stockton, stated, "COIN is likely to confirm a long-term base breakout this Friday above near $116 resistance. The breakout is a positive long-term development, suggesting the primary trend has shifted higher.

Implications of the Base Breakout

According to experts, this breakout from the base pattern could potentially trigger a rally propelling COIN towards resistance levels of $160 and possibly even $200. The weekly chart points towards a long-term bullish revival for COIN.

Understanding the COIN's Price Movements

The chart illustrates that COIN experienced a substantial fall in the first half of 2022, consequently entering a 15-month-long base formation phase between $30 and $116. Last week, prices surged beyond $116, which represents the upper end of the base pattern, indicating a breakout. This bullish development would be validated if prices maintain above this level by the end of the week. Traders often rely on successive weekly or daily closures above resistance levels to confirm such breakouts.

Edited by Jonathan Stoker