ARK Invest continues to dump Coinbase shares. Will the COIN rate fall?
Date: 2023-07-19 Author: Karina Ziganova Categories: BLOCKCHAIN, CRYPTO PAYMENTS
At the end of last week, Coinbase (COIN) shares registered their highest weekly close since April 2022. It also occurred above the horizontal resistance zone of $100
Ark Invest gets rid of Coinbase shares on growth
On July 18, Cathie Wood's investment fund Ark Invest again liquidated positions in Coinbase shares for $26.3 million, the third sale in the last week. Recall that Ark is the fourth largest owner of Coinbase shares, which previously bought them on on the fall for almost 11 months.
Earlier, on July 11, it became known that for the first time since July 26 last year, funds managed by ARK Invest reduced their stakes in Coinbase shares. On the day when shares of the trading platform rose by 9.78%, the fund sold 135,152 shares worth $13.4 million, and soon after, on July 14, another 392,140 shares were sold for $50.5 million.
Nevertheless, despite these sales, the technical picture offers a bullish outlook for the shares of the Coinbase cryptocurrency exchange. The price of COIN gives bullish signals on the weekly and daily timeframes, which may lead to continued growth.
Weekly close confirms bullish breakout
As the results of the technical analysis of the weekly chart show, the price of COIN has been growing since the beginning of the year. In June, it set an increasing minimum, after which it accelerated the growth rate. Last week, the price reached $105.
This was the highest closing level since April 2022 and also led to a breakout of the $100 horizontal resistance area. Thus, this is a significant bullish signal, which may mean that the upward movement is just beginning.
Moreover, the weekly momentum indicator RSI supports the continued upside. It is above the 50 mark and is rising, which indicates a bullish trend.
How long can the growth continue?
Meanwhile, the wave analysis of the daily chart offers two scenarios for the further movement of Coinbase shares.
The most likely is a bullish forecast, and it is supported by price dynamics on this timeframe. This option assumes that the price of COIN has just started the third wave within the five-wave bullish structure (white).
This is also supported by the fact that the price has just made a bullish breakout from the ascending parallel channel.
If this scenario is correct, then the price will end the third wave near the $150 mark, after which it will return to the resistance line of the channel to test it as support. Then a new bullish move in the direction of $170 is likely.
Meanwhile, a price drop below the channel's resistance line will mean that the trend remains bearish.
This may mean that COIN has probably completed the A-B-C (black) correction and may fall to the channel's support line at $65.
