Is COIN ready to test 2022 lows?COIN recently had a nice oversold bounce and is now consolidating around the BigRed level, which is acting as a magnet line. After a few weeks of strength, it is now showing signs of weakness as it breaks below the BigRed level again and closes the day below it, which is bearish. Additionally, it has broken down from a symmetrical triangle, which is also bearish.
The volume is currently neutral but slightly more bullish than bearish.
COIN is currently trading below its 8, 20, and 200-day moving averages, which is bearish.
The RSI is ticking down but still remains in neutral territory.
The MACD is also ticking lower, but both the MACD and signal lines are currently above the zero line, which is more bullish than bearish.
Overall: COIN seems to have lost its upward momentum, which it had gained from the bounce off the lows. It needs to move away from the BigRed level, which is currently acting as a significant resistance zone. The $60 level is also a crucial area of resistance, where a lot of volumes were observed in 2022. Without any significant positive news and with bad reports, it will be difficult for COIN to break above that level and stay above it. With the Friday close below the symmetrical triangle and the BigRed level, there is a significant chance that the price will continue to fall towards the 50-day MA or the $50 area and may even retest the lows from 2022. However, before it can reach those levels, it first needs to cross through a crucial round number like $50 and the 50-day MA.
For the bulls, the price needs to move above the BigRed level as soon as possible and close the day above the 20-day MA (green line) to even consider testing the $90 level again.
