A Quick Snapshot of COIN Performance
On July 27, 2022, Coinbase (COIN) managed to bounce back, registering a 4.35% uptick, landing at $57. This came on the heels of a tumultuous week where it had weathered a storm, losing approximately 20% of its value. Talk about a rebound; however, don’t uncork the champagne just yet, because more choppy waters may lie ahead.
The Degen Trilogy: More Bark Than Bite?
Coinbase attempted to charm investors with the debut of its inaugural movie segment, The Degen Trilogy: Part One – Run The Chain, featuring the beloved Bored Ape Yacht Club characters. While this cinematic venture might be a nod to community engagement, the market seemed less than impressed. Oftentimes, creative projects can dazzle but fail to deliver tangible results, leaving investors wondering if they’re watching a thriller or a comedy of errors.
Bad News Just Keeps on Coming
Despite the brief bounce, it’s important to note that COIN remains down around 83% since its debut on the Nasdaq in April 2021. The recent turbulence can be traced back to a slew of negative headlines. From the drop that started after Bitcoin’s downturn to the alarming news surrounding insider trading arrests of a former Coinbase manager, it’s clear that COIN’s party is far from over.
The SEC Strikes Back
The proverbial nail in the coffin came on July 26 when reports surfaced indicating that the U.S. Securities and Exchange Commission was probing Coinbase for allegedly listing unregistered securities. As if that wasn’t enough to send shivers down the spine of investors, Cathie Wood’s ARK Investment Management decided to relinquish over 1.4 million shares, further exasperating the market woes.
The Technical Landscape: What’s Next?
On the technical side, COIN faced a significant barrier, attempting to stabilize at the ascending triangle’s upper trendline. Unfortunately, the stock plummeted more than 21% on July 26, slumping to $52.93, effectively depleting the bullish momentum it had built. Analysis suggests that if the stock starts trading below this trendline, it could tumble as low as approximately $21 by September, which would be a staggering 60% decline.
Conclusion: Keep Your Eyes Peeled
In short, while the movie release might add a spark of excitement, COIN’s future doesn’t look particularly rosy from a financial perspective. As always, potential investors would be wise to proceed with caution and do their own due diligence. Remember: every investment carries risk, much like watching a suspenseful thriller; you never quite know how it’ll end!
