Key Takeaways
- Coinbase shares soared after the Senate passed the GENIUS Act, a bipartisan bill that regulates and promotes the use of stablecoins.
- After bottoming out in early April, Coinbase shares trended higher before consolidating within a flag, a chart pattern that indicates a continuation of the stock’s uptrend.
- Investors should watch crucial overhead areas on the Coinbase chart around $330 and $450, while also monitoring support levels near $265 and $212.
Coinbase Global (COIN) shares soared this week after the Senate passed the GENIUS Act, a bipartisan bill that regulates and promotes the use of stablecoins.
Investors view the legislation, the first major framework approved by Congress dealing with the digital currency industry, as a win for Coinbase. It provides regulatory clarity, legitimizing the exchange’s stablecoin business and revenue streams. On Wednesday, the company unveiled a new product named Coinbase Payments, a solution that allows customers to make payments using stablecoins on a range of commerce platforms.
Coinbase shares surged 16% to around $295 on Wednesday, ahead of Thursday’s U.S. markets holiday. The stock is now up 19% since the start of 2025, significantly outperforming the roughly 2% gain of the S&P 500 over the same period.
Below, we’ll examine the Coinbase chart in detail, using technical analysis to pinpoint key price levels that investors will likely be monitoring.
Flag Pattern Breakout
After hitting a low in early April during a broader stock market sell-off, Coinbase shares began an uptrend. This uptrend paused as the stock consolidated within a flag pattern, a chart formation that typically suggests a continuation of the existing uptrend.
The price indeed broke decisively out of the pennant pattern during Wednesday’s trading session. This breakout coincided with a sharp increase in the Relative Strength Index (RSI), indicating accelerating momentum. Moreover, the price jump occurred on the highest trading volume in over a month, suggesting strong buying conviction.
Further bolstering the bullish outlook, the 50-day moving average (MA) continues to converge towards the 200-day MA, potentially setting the stage for a bullish “golden cross” signal.
Let’s identify two crucial overhead areas on the Coinbase chart to watch for potential resistance, and also locate key support levels to monitor.
Crucial Overhead Areas to Watch
The first overhead resistance area to watch is around $330. This level on the chart corresponds to the twin peaks that formed just below the stock’s early-December high last November.
A decisive close above this $330 area could lead to the shares trending higher towards $450. This $450 target is projected using the “bars pattern” tool. By applying this technique to Coinbase’s chart, we overlay the price bars comprising the uptrend that preceded the flag pattern, starting from the pattern’s breakout point. This projection suggests a potential target of $450, indicating the upward move might continue until early August if the price action continues to follow this pattern.
