Coinbase stock (COIN) in danger of another 60% crash by September — Here's why
Coinbase (COIN) stock bounced by 4.35% to $57 on July 27 after shedding roughly 20% over the past week. But more downside is likely despite the release of Coinbase's first installment of the Bored Ape Yacht Club-featured movie called The Degen Trilogy.
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Overall, COIN is down roughly 83% since its Nasdaq debut in April 2021 with more losses possible due to weak fundamentals and bearish technicals.
To recap, COIN reached $79 on July 20, five days after breaking out of its "ascending triangle" pattern. As a rule, COIN's profit target was supposed to be around $120, up over 130% from July 27's price.
Nonetheless, the stock's bullish reversal stopped midway after reaching $79, mired by back-to-back negative pieces of news.
Initially, COIN's correction began in the wake of a broader retreat in the crypto market, led by Bitcoin (BTC). Then, the downside move picked up momentum after U.S. authorities arrested a former Coinbase manager on "insider trading" allegations.
But the biggest selloff during this correction came on July 26 after Bloomberg reported that the U.S. Securities and Exchange Commission is investigating Coinbase for listing unregistered securities.
In response, Cathie Wood's ARK Investment Management sold over 1.4 million out of nearly 9 million Coinbase shares.
COIN dropped by over 21% to close July 26 at $52.93 while testing the ascending triangle's upper trendline as support. In the process, COIN wiped out its entire bullish reversal breakout move.
Ascending triangles are typically continuation patterns. Therefore, COIN risks facing more losses in the coming days if it moves back
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