Coinbase reached $428.93 the following day before suffering a 28% sell-off that put it into consolidation. Since then, Coinbase has been in price discovery mode and with little price history, technical traders can watch the Coinbase chart on smaller time-frames for direction.
The Coinbase Hourly Chart: On Tuesday morning, Coinbase was reaching the apex of a symmetrical triangle pattern and trading directly on top of a newly made support/resistance level at $303.90.
Coinbase’s stock is trading above both the eight-day and 21-day exponential moving averages (EMAs), which is bullish, but the 21-day EMA is trending slightly above the eight-day EMA which shows indecision.
Volume on Coinbase’s stock has been notably low, which suggests traders and investors are waiting for the stock to choose a direction, or for more daily candles to print, before entering the stock.
Bulls want to see an increase of bullish volume come into Coinbase’s stock and for it to break upwards from the symmetrical triangle. If Coinbase can maintain the $304 level as support, an upwards break of the triangle could move the stock back up to the $335 level.
Bears want to see a lack of buyers’ force Coinbase’s stock to break bearish from the symmetrical triangle. If the stock breaks bearish and can’t maintain support at $304 it could revisit $282.95 before finding another support level.
COIN Price Action: Shares of Coinbase traded around $302.13 at publication time.
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