- Coinbase risks a deeper correction as price breaks below $340 support, placing $270 as the next major level.
- $COIN exited a key ascending channel, weakening the bullish case and inviting sell pressure amid failing momentum.
- Price must close above $340 soon or bearish continuation to $270 becomes increasingly probable.
Coinbase ($COIN) has broken below a major trendline and is now trading under $340, raising strong downside risk toward $270.This shift in structure marks a potential end to its recent bullish trajectory unless support is swiftly regained.
Why Coinbase Must Reclaim $340 to Prevent Further Decline
Coinbase has broken beneath the midline of its multi-month ascending channel, marking a clear shift in price structure.
The $340 level, previously acting as support, now forms a critical threshold for regaining bullish control in the short term.
After reaching highs above $440 in July, $COIN has retraced sharply, now trading around $314 on weakening momentum.
This drop also violated the 0.618 Fibonacci level, a key zone often associated with trend continuation in bullish markets.
Ali (@ali_charts) emphasized in a recent update that $COIN must reclaim $340 to avoid further decline toward $270.
The warning came as price action accelerated downward, triggering concern over the integrity of the broader uptrend.
Where $COIN Could Be Headed If Support Fails to Hold
If price fails to close above $340 soon, a full rotation toward the 0.382 Fibonacci support near $270 becomes likely.
This level also aligns with the lower bound of the previous price channel, adding further technical weight to the target.
The price structure now favors sellers, supported by increasing volume on down candles and a clean breakdown from trend.
Unless bulls regain control swiftly, $COIN could remain exposed to deeper corrective movement in the coming sessions.
What Traders Must Watch in the Current Price Setup
The technical picture leaves little room for neutrality. $COIN is either reclaimed or corrected.
This binary setup makes $340 a decisive pivot, with implications for the direction of momentum in the near term.If price returns above $340, bulls may regain footing to target higher resistances.
Without that, breakdown risk escalates, and $270 remains the logical next destination from a structural perspective.
