Here's Why Coinbase Stocks Needs To See A Bounce

Coinbase Global Inc. COIN shares were trading significantly lower Thursday and are falling toward support in a technical pattern. The company is moving in sympathy with the overall crypto market, as many cryptocurrencies are having a down day. 

Coinbase was down 9.08% at $261.37 ahead of the close Thursday. 

Coinbase Daily Chart Analysis

• Shares made a large dip and have fallen toward support in what traders call an ascending triangle pattern. The pattern shows resistance near the $300 level, while showing support near the higher low trendline.
• The stock trades below the 50-day moving average (green), indicating bearish sentiment. This moving average may hold as an area of resistance in the future.
• The Relative Strength Index (RSI) has been falling since late October 2021 and now sits at 36. This shows that the stock is seeing more and more sellers entering the market and nearing the oversold area.

What’s Next For Coinbase?

Coinbase is falling back toward support near the higher low trendline. Bullish traders are looking to see the stock bounce off of this trendline and continue to trade with higher lows. Bulls are then looking for a break of resistance with a period of consolidation above the $300 level.

Bears are hoping to see the stock fall below the higher low trendline to possibly see a change in trend. Bears are also looking to see the stock be able to hold below the 50-day moving average for sentiment to stay bearish.