What's Going On With Coinbase's Stock Following Viral Super Bowl Promo?

Coinbase Global Inc COIN was trading about 2% higher on Monday morning after its Super Bowl ad, which featured a QR code linked to its “Less Talk, More Bitcoin” promotion and sign-up page, went viral and temporarily crashed its site.

Coinbase Chief Product Officer Surojit Chatterjee said on Twitter shortly after the crash that Coinbase had experienced the highest-ever traffic on its website with more than 20 million visitors landing on the page within one minute.

Former CIA agent and whistleblower Edward Snowden took to Twitter to criticize the cryptocurrency trading platform for spending $16 million on a Super Bowl ad while spending zero to ensure the website didn’t crash. It is unclear how Snowden would know whether Coinbase spent money to attempt to ensure the functionality of its website following the ad airing.

The advertisement may have helped decouple Coinbase from the general markets at least temporarily because on Monday the stock was trading in tandem with Bitcoin BTC/USD and Ethereum ETH/USD, which were trading about 1% and 2% higher, respectively, while the SPDR S&P 500 ETF Trust SPY was continuing to fall.

See Also: Coinbase Extends Bitcoin Giveaway To Existing Users After Super Bowl Fame: How To Enter

The Coinbase Chart: Coinbase reversed course into an uptrend on Jan. 28 when it printed a bullish double bottom pattern at the $162.20 level when paired with similar price action on Jan. 24. The bullish reaction to the pattern caused the stock to break up bullishly from a falling channel pattern on Feb. 7, which had been holding Coinbase down since Nov. 9, 2021.

The stock is now trading in a confirmed uptrend with the most recent higher low created on Feb. 4 at the $191.48 mark and the most recent higher high formed at the $217.49 level on Feb. 10. Bullish traders will want to see Coinbase rise up over that level over the coming days to ensure the uptrend is still intact.

Coinbase is trading in line with the eight-day exponential moving average (EMA) and slightly below the 21-day EMA, which indicates indecision. The stock is trading below the 50-day simple moving average, which indicates longer-term sentiment is bearish.

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• Bulls want to see sustained bullish volume push Coinbase up over the 21-day EMA and then for the stock to continue trading above the area. This will eventually cause the eight-day EMA to cross above the 21-day. Coinbase has resistance above at $208 and $213.23.
• Bears want to see big bearish volume come in and drop Coinbase down below the $180 level, which will negate the uptrend and move the stock back into the falling channel. There is support below at $191.48 and $177.45.

Photo: Courtesy Coinbase