Coinbase Price Levels to Watch as Stock Surges to 3-Year High | Global News Avenue

Coin Library (coin) shares surged to a three-year high on Monday as investors bet higher trading volumes and a more favorable regulatory environment under the incoming Trump administration could benefit cryptocurrency exchanges.

The move comes as Bitcoin (Bitcoin USD) reached new highs on Monday, breaking through $88,000, while Ethereum (Ethereum USD), native token Ethereum Blockchain, rising to its highest level in years. Rising cryptocurrency prices boost Coinbase by generating more trading activity, which in turn increases the company’s revenue by increasing fees.

Going forward, Coinbase could also benefit from a new regulatory framework for digital assets proposed by Republican Senator Tim Scott, who is expected to chair the Senate Banking Committee after the Republicans regain control of the upper chamber after the election. , this development will reduce compliance requirements for cryptocurrencies. cryptocurrency trading and custody platform.

Coinbase shares rose 20% during regular trading on Monday before rising nearly 3% to around $333 in after-hours trading.

Next, let’s break it down technical on Coinbase Weekly chart and pinpoints key price levels that other investors may be watching.

Downtrend Channel Breakout

Since the formation of textbooks Head and Shoulders Reversal Coinbase shares were mostly higher during the bottoming pattern in the 12-month period from June 2022 to 2023.

Most recently, the stock traded in seven months Descending channel before taking decisive action breakthrough The pattern moved above the upper trendline last week, with follow-through buying continuing into this week.

Importantly, last week’s breakout occurred at the top volume This shows the firm belief that larger market players have had in this move since early March.

Let’s identify the key management fee levels on the Coinbase chart that investors may be concerned about, and point out one important factor support Area to monitor during retracements.

Key Spending Levels to Watch

The first higher level to watch is around $369, a level investors who bought Coinbase stock at lower prices on the chart might seek out. Lock in profits Approaching November 2021 peak.

Further gains could lead to the stock retesting the $430 level, an area on the chart that could attract significant selling pressure near April 2021 All Time High (ATH).

To predict overhead levels to monitor above ATH, we can analyze using bar pattern historical price Trends on charts to predict future movements. To apply this technique, we extend the stock’s trend period from June 2023 to March this year and reposition it starting in September swing low. This predicts a price target About $695.

Important support levels to monitor

in a pull back Within the stock, investors should keep a close eye on the $220 level, where the stock could attract support near the initial breakout area, which also corresponds to a trendline connecting a series of comparable prices. price action On the May 2021 chart.

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As of the date of this writing, the author did not own any of the securities mentioned.