COIN: The Last Winner or the First Loser?
NASDAQ:COIN
Hello, everyone!
I’d like to share my technical outlook on the current position of COIN.
Weekly Analysis:
1. Momentum Indicators: On the weekly chart, COIN is gradually exiting oversold territory, indicated by the Relative Strength Index (RSI) and Stochastic Oscillator. This steady, controlled shift suggests a potential shift in momentum towards bullish sentiment.
2. Bullish Falling Wedge: A reversal pattern in the form of a bullish falling wedge has also emerged on the weekly chart. This pattern is typically a sign of trend reversal and implies potential upward movement if confirmed by a breakout above resistance.
3. MACD Histogram: The Moving Average Convergence Divergence (MACD) histogram is moving upward, transitioning out of the downtrend. This shift in momentum aligns with the signals from the RSI and Stochastic, further reinforcing a potential bullish reversal.
Monthly Analysis:
4. Fibonacci Levels: On the monthly chart, COIN is holding above the $182 support level, which is key from a Fibonacci retracement perspective. Maintaining this level supports the likelihood of a sustained upward trend.
5. Tri Star Reversal Pattern: A Tri Star reversal pattern may be forming on the monthly chart. While traditionally consisting of three stars, even a two-star formation in this context signals a potential reversal.
Summary:
Taking all these factors into account, I consider it reasonable to open a long position in COIN, with a target price of $390 by the end of February 2025. This target aligns with resistance levels observed on higher time frames and with the broader bullish technical picture emerging in COIN’s momentum indicators and price action.
Disclaimer: This analysis reflects my personal opinion and is provided for informational purposes only. It is not intended as financial advice or an investment recommendation.