Coinbase Stock Surges 16.32% As Technical Indicators Flash Bullish Signals

Candlestick Theory
Coinbase Global exhibits a bullish engulfing pattern on 2025-06-18, with the session closing near the high ($295.29) after a 16.32% surge. This follows a hammer formation on 2025-06-13 (low: $235.29, close: $242.71), signaling rejection of lower prices. Key resistance is evident near $300 (tested intraday on 2025-06-18), while support resides around $240–$245, aligning with the May-June consolidation lows. The recent breakout above $263.3 (2025-06-16 high) confirms bullish conviction.
Moving Average Theory
The 50-day MA (currently near $240) recently crossed above the 100-day MA (now $225), forming a bullish "golden cross." The price ($295.29) trades well above all three key MAs (50/100/200-day), confirming a strong uptrend. The 200-day MA (approximately $220) acts as primary long-term support. Sustained trading above the 50-day MA since mid-May underscores bullish momentum.
MACD & KDJ Indicators
MACD shows a bullish crossover in early June, with the histogram expanding positively—indicating accelerating upward momentum. KDJ’s recent exit from overbought territory (K: 88→76) after the June rally allows room for further upside. No bearish divergences are apparent; both oscillators align with the price trend. The KDJ "golden cross" (K>D) in late May preceded the current rally, supporting trend continuity.
Bollinger Bands
A volatility contraction in late May (bandwidth narrowing to 12%) preceded the explosive June breakout. Price now rides the upper Bollinger Band ($288), reflecting strong bullish momentum. The widening bands (current bandwidth ~18%) confirm trend acceleration. Historical precedent (e.g., December 2024 breakout) suggests extended rallies may follow such expansions, though mean reversion near $285–$290 remains possible.
Volume-Price Relationship
The 16.32% surge on June 18 occurred on 36.8M shares—153% above the 30-day average—validating breakout conviction. Volume consistently expanded on up days (June 16: +7.77% on 12M shares) and contracted on minor pullbacks (June 17: -2.95% on 9M shares), confirming accumulation. The May 13 rally (+23.97% on 39.1M shares) established a high-volume support base near $230.
Relative Strength Index (RSI)
The 14-day RSI (71.3) is marginally above the overbought threshold (70) after the recent surge. While elevated, the absence of bearish divergence (price and RSI made new highs) tempers reversal concerns. Historically, COIN’s momentum can sustain extended RSI readings (e.g., December 2024: RSI>70 for 8 sessions). A pullback to reset RSI could offer entry opportunities near key supports.
Fibonacci Retracement
Using the swing low of $147.35 (2024-09-06) and high of $349.75 (2024-12-06), the 61.8% retracement level at $230 provided critical support during May-June 2025. The recent rally surpassed the 38.2% resistance ($275), with the 23.6% level ($305) now acting as immediate resistance. Confluence exists here as psychological $300 aligns with Fibonacci resistance, explaining the June 18 intraday rejection at $299.32.
Confluence & Divergence Observations
Strong confluence exists for bullish momentum: The breakout above $263.3 (candlestick resistance), golden cross (MAs), MACD/KDJ momentum alignment, and volume-backed price action collectively validate upward pressure. A minor divergence emerged in June: KDJ briefly turned down during consolidation while price held steady, but this resolved with the surge past $295. The $300–$305 zone (Fibonacci 23.6% + psychological barrier) presents critical resistance, where profit-taking may emerge. Downside risks appear limited to $275 (recent breakout point/38.2% Fib), bolstered by the rising 50-day MA. The primary technical structure favors continuation pending a decisive close above $305.