Hello Traders! In this technical blog we are going to take a look at the Elliott Wave path in Coinbase Global Inc. ($COIN) and explain why the stock should see more downside in a 7 swings WXY correction towards a Blue Box area.
Coinbase Global, Inc., branded Coinbase, is an American publicly traded company that operates a cryptocurrency exchange platform. Coinbase is a distributed company; all employees operate via remote work. It is the largest cryptocurrency exchange in the United States in terms of trading volume.
7 Swings WXY correction
$COIN Daily Elliott Wave View – Sep 09, 2024:
The Daily chart above shows the cycle from Jan 2023 low unfold as a 5 waves impulse suggesting the start of a bullish trend. The rally peaked in March 2024 and started a double correction. The first leg lower unfolded in a 5 waves structure followed by a bounce in 3 swings to correct it. The bounce failed at (B) and sellers were able to break below wave (A) reaching the blue box area $184.16 – 129.55. The bounce from the blue box area failed at ((X)) and continued to make new lows below ((W)). As a result, sellers are in control and therefore, bounces will likely fail in 3 or 7 swings. Meanwhile, buyers can wait for the 2nd blue box area highlighted above to re-enter. In conclusion, we expect the stock to remain weak and reach $89.30 – $31.55, where it may potentially react with a move higher.