Coinbase stock has potential to double in 2022 after plunging 90% from record high
Coinbase stock (COIN) price has nearly doubled since its June lows with a potential for much more upside this year, according to a mix of technical and fundamental indicators.
COIN has been undergoing a strong bullish reversal after falling by almost 90% from its record high of $368.90 in November 2021.
Coinbase stock price was up over 95% to $75.27 as of July 20's close when measured from its May 12 local bottom of $40.83. Its recovery led to a symmetrical triangle pattern formation with the price forming a sequence of lower highs and higher lows.
Symmetrical triangles in downtrend typically turn out to be bearish continuation patterns. They resolve after the price breaks below their lower trendlines to fall further. But in rare instances, a symmetrical triangle could form at the end of a downtrend, leading to sharp bullish reversals.
As it seems, COIN has already entered the breakout stage of its symmetrical triangle reversal pattern. Notably, Coinbase stock closed above the structure's upper trendline on July 28 while accompanying a rise in trading volume, as shown below.
COIN now tests $80 as its interim resistance while eyeing a further upside toward $135. The profit target is measured after calculating the maximum distance between the symmetrical triangle's upper and lower trendline and adding the outcome to the breakout point.
The triangle's upside target appears closer to COIN's 200-day exponential moving average (200-day EMA; the blue wave in the chart above) near $153. That psychologically raises the possibility of COIN forming bullish wicks toward $153 if it reaches $135 this year.
That would mean a 102% rally from today's price.
Coinbase Q1 earnings were underwhelming due to weaker-than-expected revenue and a
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