Chart Analyst Bullish on Coinbase: Foresees Continued Momentum in the Rally

Shares of Coinbase (COIN), the cryptocurrency exchange, have demonstrated a substantial surge, recording an impressive 300% increase over the current year. This remarkable performance surpasses that of Bitcoin (BTC) by a significant margin. Fairlead Strategies' insights suggest that recent chart patterns hint at the potential for additional gains, as COIN seems on the verge of confirming a breakout from a long-term base pattern.

In the domain of technical analysis, the term "basing" denotes an asset consolidating within a specific price range for an extended period following a notable sell-off. The energy accumulated during this consolidation phase typically manifests in the direction of the breakout, particularly towards higher values in the case of a bullish trend.

Fairlead's analysts, led by founder and managing partner Katie Stockton, express optimism regarding COIN's outlook. They anticipate the confirmation of a long-term base breakout, especially above the resistance level around $116, slated for this Friday. This breakout is considered a positive and substantial long-term development, signaling a shift in the primary trend towards higher valuations.

As per the analysts, this base breakout has paved the way for a potential rally, with crucial resistance levels identified at $160 and potentially $200. The chart analysis highlights COIN's downturn in the first half of 2022, entering a 15-month-long base formation within the $30 to $116 range.

COIN's Ascendance: Weekly Chart Signals Long-Term Bullish Resurgence on TradingView 

In the previous week, prices exceeded the $116 threshold, the upper limit of the base pattern, marking a breakout signal. The bullish development is expected to gain confirmation if prices maintain levels above this threshold by the week's end. Traders commonly look for consecutive weekly or daily closes above resistance levels to validate breakouts and ensure the sustainability of a new trend.

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