Coinbase Breakout Level: 3rd Time Lucky For COIN?

Coinbase (COIN) has been a key beneficiary of this year’s crypto rally – with the stock price up over 200% off its lows. But for all its strength, it’s struggled to crack through the $100 ceiling. With the stock ending last week at $99.05, this will now be its 3rd attempt (grey circle, in the chart). So, is a Coinbase breakout still in the cards?

Why $100 is big level for COIN

Coinbase breakout traders will be frothing over this chart right now. The levels are extremely clean and simple. The yellow line shows how $100 acted as price resistance in August last year (1), July this year (2), and Friday last week (3). If COIN can start to break above $100 – and turn that into price support – there’s pretty much clear skies until the $150 to $200 region (grey box). Consider too that $100 is a nice round number, which makes it a major psychological level for traders.

You can think of price resistance like a ceiling made of thick glass. The more times you throw a ball at it, the more chance it will eventually break. Notice how the stock has made higher lows this whole year (white line). It shows buyers are getting stronger, because they’ve marched the price floor up level by level. In other words, they’re throwing that ball at the $100 ceiling from a closer and closer distance. Of course, you’ll want to see this higher low structure maintained for the buyers to stay on the ascent.

If you’re more into fundamental analysis than technical analysis, I wrote a deep dive into Coinbase stock here. If crypto is the new gold rush, Coinbase might be its pickaxe and shovel. 

Disclaimer: This is not investment advice. I hold COIN in my long-term portfolio.