Coinbase Global Slumps 3.33% on Bearish Engulfing Pattern as Technical Indicators Signal Prolonged Downtrend with Oversold RSI and Key Support Levels

Candlestick Theory
Coinbase Global (COIN) has experienced a 3.33% decline in the most recent session, marked by a bearish engulfing pattern on December 17, where the body of the candle fully encompasses the prior session’s range. Key support levels emerge at $244.19 (December 17 close) and $238.16 (November 20 low), while resistance clusters near $250.42 (December 15 low) and $267.46 (December 12 high). A potential bearish breakdown below $244.19 could target the next support at $231.17, with a bullish counter-trend rebound likely to face immediate resistance at $252.61 (December 16 close).

Moving Average Theory
Short-term momentum (50-day MA) remains below the 100-day and 200-day MAs, confirming a bearish bias. The 50-day MA currently sits at ~$270, while the 200-day MA is closer to $300, indicating a prolonged downtrend. A crossover above the 50-day MA might signal a short-term rally, but sustained action above the 200-day MA is improbable without a significant reversal. The 100-day MA at ~$280 could act as a dynamic resistance if the price attempts a rebound.
MACD & KDJ Indicators
The MACD histogram has turned negative, with the line crossing below the signal line on December 17, reinforcing bearish momentum.

The KDJ indicator shows a bearish divergence, as the %K line (14-period) crossed below the %D line while prices continued to fall, suggesting exhaustion in the downtrend but no immediate reversal. Overbought conditions are absent, but oversold thresholds (~30 on RSI) may trigger a temporary bounce if volume surges.
Bollinger Bands
Volatility has expanded recently, with the upper band near $278 and the lower band dipping to $243. The price closing near the lower band on December 17 suggests oversold conditions, though the bands’ width indicates heightened uncertainty. A break below the lower band could signal a continuation of the downtrend, while a rebound toward the middle band (~$260) may test intermediate resistance.
Volume-Price Relationship
Trading volume on December 17 (8.4 million shares) surged compared to the prior session, validating the bearish breakdown. However, volume has remained elevated since mid-December, suggesting sustained selling pressure. A declining volume profile during pullbacks (e.g., December 16’s 6.9 million shares) may indicate weakening bearish conviction, creating opportunities for short-term reversals.
Relative Strength Index (RSI)
The 14-period RSI stands at ~28, entering oversold territory but lacking a bullish reversal signal. While this may attract buyers near $244.19, caution is warranted as the RSI has not yet formed a bullish divergence. A close above $250 could push RSI above 30, but a sustained move above $260 would be required to clear the 50-level threshold and signal a potential trend shift.
Fibonacci Retracement
Applying Fibonacci levels to the December 13 high ($303.97) and November 20 low ($231.17) reveals critical zones: the 61.8% retracement (~$263) and 50% retracement (~$267) align with recent resistance levels. A breakdown below the 38.2% retracement (~$247) would confirm a deeper correction, targeting the 23.6% level (~$238) as a potential short-term floor.

Confluence and Divergence
The bearish alignment of candlestick patterns, moving averages, and MACD is reinforced by elevated volume and Fibonacci support levels. However, the RSI’s oversold reading and Bollinger Bands’ contraction near $244 suggest a probabilistic short-term rebound. Divergences arise between the KDJ’s bearish signal and the RSI’s oversold condition, indicating a mixed outlook. Traders should prioritize liquidity at key Fibonacci and moving average levels while monitoring volume for confirmation of trend continuation or reversal.