Coinbase Stock Surges 14% To $389 On Bullish Technicals And Heavy Volume

Candlestick Theory
Coinbase Global's recent price action shows a robust bullish continuation pattern. The last two sessions formed consecutive white candles with higher highs and higher lows, closing near session peaks at $388.96. This follows a hammer candle on July 8th at $354.82 (after testing $348 support), signaling rejection of lower prices. Key resistance is established at the $389–$390 zone, coinciding with the July 10th high. Immediate support lies at $370–$373 (July 9th low and 5-day consolidation floor), with major support at $348–$353, aligning with the June–July swing lows.
Moving Average Theory
The 50-day MA ($315) crossed above the 100-day MA ($290) in early June, confirming a bullish medium-term trend. Current price ($388.96) trades comfortably above all three key MAs, with the ascending 50-day MA acting as dynamic support. The 200-day MA ($254) provides long-term foundational support. The stacked order (50 > 100 > 200) reflects a strong uptrend, though the 14% premium over the 50-day MA suggests potential near-term consolidation.
MACD & KDJ Indicators
MACD (12,26,9) shows a bullish crossover in late June, with the histogram expanding positively since July 2nd, confirming accelerating momentum. KDJ (14,3,3) oscillators align: K-line (82) and D-line (78) hover near overbought territory but maintain upward slopes, while J-line (90) indicates sustained buying pressure. No bearish divergences are evident, though KDJ overbought readings caution against near-term exhaustion without signaling immediate reversal.
Bollinger Bands
Bands expanded sharply in June as volatility surged during the rally from $250 to $389. The July price action hugs the upper band, reflecting persistent bullish momentum. The 20-day average bandwidth remains 15% above its June low, sustaining elevated volatility. A close below $385 (mid-Bollinger level) could trigger profit-taking toward the lower band near $350.
Volume-Price Relationship
Volume confirms bullish conviction, with July 10th turnover hitting 16.8M shares (30% above 30-day average) on a 4% rally – a sign of institutional accumulation. The June 24th breakout (12% surge on 29.7M shares) and July 2nd rally (5.7% gain on 12.4M shares) established high-volume support zones at $295–$308. Declining volume during July 3–7 consolidation preceded the current high-volume breakout, validating sustainability.
Relative Strength Index
Daily RSI (14-period) reads 73, entering overbought territory but without divergence – a typical characteristic of strong trends. Weekly RSI (65) retains upside room. The July rally’s stair-step pattern allowed intermittent RSI cooldowns (e.g., dip to 58 on July 8th), mitigating overheating risks. While RSI >70 signals caution, trend alignment suggests pullbacks may be shallow.
Fibonacci Retracement
Applying Fib levels to the March–July surge (swing low: $170 on April 14th; high: $389 on July 10th) shows the current price tests the 261.8% extension level ($388). This aligns with psychological resistance at $390. Retracement supports cluster at $353 (38.2%), $336 (50%), and $320 (61.8%), coinciding with prior consolidation zones and the ascending 50-day MA.
Confluence & Divergence Observations
Strong confluence exists at $348–$353, where swing lows, the 38.2% Fib level, 50-day MA, and Bollinger mid-band converge – a critical bull/bear pivot. The $389–$390 resistance combines the 261.8% Fib extension, July 10th high, and psychological threshold. No material divergences appear, though RSI overbought conditions against upper Bollinger Band proximity suggest near-term consolidation is probable before further upside. Volume-backed price action and aligned moving averages maintain the bullish structural bias.