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Coinbase (COIN) just pulled off one of its nastiest moves this year, jumping 18.82% in two sessions after a golden cross fired on the chart. The bullish crossover between the 50-day and 200-day moving averages lined up almost perfectly with a clean break above the $370 level, setting off a rush of volume and a surge that left the chart looking vertical. With the crypto market already strong, the timing could not have been better.
But now the stock is flashing overbought.
The RSI has shot past 80, which is not unusual for COIN, but one cannot ignore it either. The last time the price got this hot, back in November 2024, the stock dropped 18.21% in just three trading days. That sell-off did not just stop or fade out; it reversed hard.
Now, there is a question on everyone's mind: is this breakout still running, or is it starting to burn out?
There is also the question of how far the COIN stock price has moved away from its original base. The 200-day sits near $236, and the 50-day has only just crossed $241. The price is now much higher than both of these, which leaves a big gap underneath it that often pulls prices back in during corrections.
If this turns into a pause or pullback, the fall could be quick, especially without layered support to cushion it.
Momentum and sentiment are clearly bullish, with crypto seeing another wave of inflows, Bitcoin holding strong above $107,000 and altcoins picking up steam. Coinbase, of course, is benefiting from all the hype and optimism. But that does not cancel out the technical aspects.
If history is anything to go by, COIN can climb hard, but it can also fall fast. With the RSI in the top zone and the chart stretched to the max, the next few sessions are crucial.
Vladislav Sopov
U.Today Editorial Team