Coinbase Global Inc (NASDAQ:COIN) started trading with a bang on April 14 when it debuted on the Nasdaq 100 at $388.98.
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.
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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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