Coinbase Global, Inc COIN surged 12% over Friday’s closing price on Monday morning, before retracing down to trade about 5% higher at press time.
Bitcoin BTC/USD spiking up almost 5% higher helped Coinbase to hang onto some of its gains, while the general market fell from its high-of-day after trapping bulls in what appeared to be a potential break out for the S&P 500.
The cryptocurrency market has been in a long-term slumber after the apex cryptos, Bitcoin and Ethereum ETH/USD fell significantly from their Nov. 10, 2021 highs of $69,000 and $4,867.81, respectively. Now trading down 54% and 62% from those all-time highs, Coinbase has also struggled to gain traction after plunging about 80% from its 52-week high of $368.90, printed on Nov. 9, 2021.
That may be set to change if Coinbase can get follow-through on the break of a descending trendline, which the stock broke up through on Monday.
A descending trendline acts as a resistance level and indicates there are more sellers than buyers, as the price continues to fall.
In order for a trendline to be considered valid, the stock or crypto must touch the line on at least three occasions. After that, the more times the trendline is touched, the weaker it becomes.
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The Coinbase Chart: The descending trendline on Coinbase’s chart has been developing since March 30, when the stock entered into a fairly consistent and long-term downtrend. On Monday, Coinbase opened above the trendline and retraced to test the area as support.
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