Coinbase Global (COIN) going public on the Nasdaq has been nothing but negative for the crypto industry. It led to the peak in Bitcoin, carnage in altcoins, and even COIN itself got crushed in the days following the debut.
But now COIN is beginning to bounce, breaking out from the only downtrend resistance it has ever known, and could be ready to recover. At the same time, it could be part of what’s restoring positive sentiment elsewhere in the market, provoking a surge in buying across the board.
Coinbase Global Recovery On Nasdaq Gives Crypto Bulls Confidence
When Coinbase Global launched on the Nasdaq it immediately saw extreme volatility. The newly launched stock representing shares of the top cryptocurrency exchange in the United States debuted at around $380 a share, rising to a high of $429.
Related Reading | Low Volatility Bitcoin Suggests “Massive Upside Still Ahead”
The debut daily bell rang at around $328 a share, and it was nothing but downhill after. A low has potentially been set at $207 per COIN, and the asset has now penetrated through three different waves of diagonal downtrend resistance, even making it through the most touched trend line of all.
COIN is at horizontal resistance after a breakout | Source: NASDAQ-COIN on TradingView.com
In technical analysis, breaking through three diagonal trend lines can be a sign of a greater reversal, and it has already helped to uplift the rest of crypto as well.
COIN could have a large impact on the crypto space, and it turning bearish brought down Bitcoin and altcoins. With the asset now recovering, so too are the cryptocurrencies Coinbase offers its customers.
COIN has taken out two important levels on the Ichimoku | Source: NASDAQ-COIN on TradingView.com
Bullish COIN Technicals Match Bitcoin And Other Major Altcoins
Additional technical signals says that the exchange most synonymous with Bitcoin and Ethereum in the US could shoot up in share price. Price action has broken above the Tenken-sen and Kijun-sen on the Ichimoku indicator, and if the blue line crossed above the red, sustained growth could be ahead.
Related Reading | Classical Chartered Market Technician Warns Of Bitcoin “Bear Trap”
COIN is also releasing pent up volatility as indicated by the Bollinger Bands. After a few weeks of “squeeze,” a break above the middle-BB and a close above the upper band should cause Coinbase shares to spike higher.
A close outside the upper band is bullish for Coinbase share | Source: NASDAQ-COIN on TradingView.com
Coincidentally, Bitcoin and other top coins are at the middle-BB on the daily timeframe and are exhibiting a similar narrowing of the bands. When the Bollinger Bands squeeze like the above, it suggests a massive move is on the horizon. The direction is less clear, however, where an asset’s price is compared to the middle-BB often indicates the direction.
With COIN, Bitcoin, and many other assets at the middle-BB now, today’s daily close could provide a better idea if these assets are ready to recover, or if the upside move was a dead cat bounce ahead of more lows.
Featured image from iStockPhoto, Charts from TradingView.com