Coinbase (COIN) stocks have shown significant growth recently, driven by positive trends in the crypto market and alternative cryptocurrencies. However, technical indicators suggest there are risks ahead.
Golden Cross and Its Impact
Coinbase's stocks surged 18.82% over two trading sessions following the formation of a golden cross on the chart. This signal, which occurs when the 50-day and 200-day moving averages cross, coincided with a breakout above the $370 level, triggering a substantial increase in trading volume.
Technical Indicators and Possible Correction
However, the stocks show signs of being overbought, with the Relative Strength Index (RSI) exceeding 80. Historically, similar situations have resulted in sharp declines, as seen in November 2024. Currently, the stock price is significantly above the 200-day moving average, which stands around $236.
Overall Trend in the Crypto Market
Despite the potential for correction, the overall trend in the crypto market remains positive, with rise in Bitcoin and altcoin prices. Coinbase is benefiting from this positive momentum, creating interest in the company's shares, although the current state of the charts also raises concerns about the possibility of a quick downturn.
The sharp rise in Coinbase's stock amidst positive news from the crypto market highlights the volatility of the current situation. Investors are advised to closely monitor technical indicators that may signal an imminent change in trend.
