Week 20 of 52 — COIN: Why a 35% Drop Didn’t Kill the UptrendCoinbase Global, Inc. Class ABATS:COINRobert_V12Case Study #2 — COIN: Why a 35% Drop Didn’t Kill the Uptrend COIN is a great example of why traders should focus on structure, not just the size of a pullback. Many people see a 30%–40% drop and immediately assume the trend is over. But in strong, volatile stocks like Coinbase, large pullbacks can happen inside a bigger bullish structure without fully invalidating the uptrend. The key question is not: “Did price drop a lot?” The better question is: “Did price break structure?” In COIN’s case, the major uptrend was still defined by a series of higher lows and higher highs. Even after the sharp pullback, price reacted near a previous support area instead of completely losing the broader bullish structure. That reaction was important. The market did not just collapse through support. Buyers stepped back in, defended the area, and COIN recovered aggressively afterward. From that support reaction, price produced a powerful move of nearly 200%, showing that the trend was not dead — it was resetting. This is one of the biggest lessons in trend trading: A pullback does not automatically end an uptrend. An uptrend is usually in danger when price starts breaking key higher lows, failing to reclaim support, and creating lower highs after the bounce. Until that happens, deep corrections can still be part of the trend. COIN also shows why trendlines should not be treated as magic lines. The trendline can help visualize direction, but the real trend is the structure behind it: Higher lows Higher highs Support reactions Strong recoveries after corrections Right now, COIN has already had a strong recovery and is now pulling back again after making another higher high. The next important thing to watch is whether price can defend the current support area and avoid turning this pullback into a deeper structural breakdown. For me, the lesson is simple: The trend is not the line. The trend is the structure. A 35% drop looked scary, but it did not kill the uptrend because the market structure remained alive. Disclaimer: This is not financial advice. This post is for educational purposes only. Always do your own research and manage your own risk.