Coinbase stock price rose to a crucial resistance level as the crypto market bounced back after the ceasefire between Israel and Iran. It jumped to the psychological point at $350, its highest level on December 2, and 145% above the lowest point this year.
Coinbase stock price technical analysis
The weekly chart shows that the COIN stock price made a strong bullish breakout since April, when it bottomed at $141.8. It has soared by 145% from its lowest point in April, giving it a market capitalization of over $87 billion.
The surge pushed it to a crucial resistance level, which was its highest swing in December last year and the 78.6% Fibonacci Retracement level. It has formed a double-top pattern whose neckline is at $141.85. A double-top pattern is one of the most bearish patterns in technical analysis.
Coinbase stock price has moved above the 50-week and 25-week Exponential Moving Averages (EMA), a sign that bulls are in control. It has also moved above the ascending trendline that connects the lowest swings since 2023.
COIN stock has moved to the weak, stop, and reverse point of the Murrey Math Lines tool. Oscillators like the Relative Strength Index (RSI) and the MACD have all pointed upwards, while the Average Directional Index (ADX) rose to 20, a sign that the momentum is continuing.
Therefore, the most likely scenario is where the Coinbase stock price wavers at the current level as some investors take profits. More gains above this level will point to more gains, potentially to the extreme overshoot point at $437, which is about 30% above the current level.
On the flip side, a move below the psychological point at $250 will invalidate the bullish Coinbase stock forecast. This price also coincides with the major S/R level of the Murrey Math Lines.
Why COIN share price soared
COIN stock price jumped because of the strong performance of the US stock market. The Dow Jones Index jumped by over 507 points on Tuesday, while S&P 500 and Nasdaq 100 indices rose by 67 and 280 points, respectively.
The stock market surge coincided with the strength of the crypto market as Bitcoin, Ethereum, and most altcoins rallied. Bitcoin jumped to $106,000, while Ethereum rose to $2,430. Some of the other top gainers in the crypto market were Maple Finance, Centrifuge, Pi Network, and DEXE.
Coinbase stock price also jumped as ETF inflows continued soaring. Investors added over $588 million into Bitcoin ETFs on Tuesday, bringing the cumulative total to over $47.58 billion.
Ethereum ETFs had net inflows of over $71 million, bringing the cumulative total to $4 billion. This is notable for Coinbase because is the biggest custodian in the crypto industry.
A key concern for Coinbase is whether the company has become highly overvalued. The average estimate among analysts is that its annual revenue will jump by 13.5% this year to $7.45 billion, followed by $8.12 billion next year. This means that it has a price-to-forward 2026 ratio of 10.3, which is high.
Analysts also anticipate the results to show that its earnings per share (EPS) will be $5.4 this year and $7.63 next year. With its strong trading at $344, it means that its forward PE ratio is 45, which is equally high.
While Coinbase stock price is highly overvalued, its uptrend may continue as long as the crypto market rally continues.
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