Coinbase (COIN) Emerges From Supply Exhaustion: What’s Next For The Crypto Giant?

Coinbase Global, Inc (COIN) is a publicly traded cryptocurrency exchange platform in the US. It is the largest US exchange by trading volume, serving both retail and institutional investors. The company offers products such as the Coinbase app for buying, storing, and trading cryptocurrencies, Coinbase wallet, and Coinbase NFT. Coinbase trades over 50 different digital assets.

Log scale has been used for this 13-month chart of COIN for clearer illustration.

COIN has been in a down trend since Nov 2021. The inability of the price to rally up and breaking support of $150 led to Wyckoff last point of supply (LPSY). The confirmation of more distribution materialized as it Wyckoff sign of weakness (SOW) to the downside. The price gap down on 11 May 2022 and the spike of volume suggests it would be the Wyckoff selling climax (SC). The subsequent reaction is an automatic rally to hit $84 followed by a test to $46 on 13 Jun. This defined the temporary trading range.

The price attempted a rally to break the resistance at $84 on 4 Aug but was unable to commit above it and became Wyckoff upthrust (UT). The spike in volume suggests the presence of supply. Subsequently, the price retraced into range and was able to stay above $58. On 8 Nov, another large spike in…