Coinbase Is Under Pressure Due To Crypto's Fall Since November 2021

Coinbase Global, Inc., branded Coinbase (COIN), is an American company that operates a cryptocurrency exchange platform. Coinbase is a distributed company; all employees operate via remote work and the company lacks a physical headquarters. It is the largest cryptocurrency exchange in the United States by trading volume. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam.

COIN Daily Chart for March 2022

Coinbase made its debut on Wall Street in April of 2021, reaching a value of 429.54. It started a correction immediately, and that is why we are calling wave (I) at that high. The correction had extended lower as a flat structure in the form of 3-3-5.

In the chart, we can see 3 swings down from the peak, and we labeled these as ((A)), ((B)), and ((C)). These 3 waves completed wave “a” at 208.00 and started the bounce in wave “b.” Wave “b” reached the 368.90 level, making 3 swings up as a zig-zag correction in the form of 5-3-5.

Therefore, we have 3 waves down and up, and we need 5 more waves down to complete wave (II). The impulse from wave “b” already made 4 waves down, and we are seeing the development of the last one. Wave (1) of ((5)) ended at the 156.53 level. Wave (2) bounced to the 181.45 level and turned lower again.

We are currently seeing the development of wave (3) of ((5)). To confirm wave (3) is underway, we need to break the 155.92 level to finish wave ((5)) of “c." We believe we may see this correction complete at the 147.07–94.70 area, where COIN may continue the rally.