Key Takeaways

Coinbase (COIN) shares lost ground for a fourth-consecutive session on Monday, wrapping up a volatile month in which the stock lost one-fifth of its value.

Coinbase (NASDAQ:COIN) shares lost ground for a fourth-consecutive session on Monday, completing a volatile month in which the stock lost one-fifth of its value.

Coinbase shares have slid sharply since hitting a three-year high in early December, with the decline closely tracking a steep fall in trading volumes on the exchange. The exchange saw a significant decline in trading volumes as bitcoin (BTC) prices fell sharply from their December peaks, prompting concerns that lower transaction fees could crimp the company’s revenue.

Coinbase shares have lost about half their value from their December peak, tracking a broad sell-off in leading cryptocurrencies and technology stocks over worries that tariffs could slow economic growth and reignite inflation. The stock fell 1% to close Monday's session at $172.23.

Below, we break down the technicals on the Coinbase chart and point out major price levels worth watching out for.

Descending Broadening Formation Coinbase shares have retreated within a descending broadening formation since last November, with the 50-day moving average (MA) poised to cross below the 200-day MA to form an ominous death cross, a chart pattern that signals lower prices.

More recently, the stock has fallen toward the formation’s lower trendline, though volume generally declined throughout most of March, indicating a waning trading interest in the shares.

Meanwhile, the relative strength index (RSI) nears oversold territory, cautioning investors of weakening price momentum.

Let’s locate major support and resistance levels of interest on the Coinbase chart that investors me be watching.

Major Support Levels of Interest A decisive breakdown below the descending broadening formation’s lower trendline could see the shares initially revisit lower support around $146. Investors may look for buying opportunities in this area near last year’s prominent September swing low, a location also aligning with a series of comparable trading levels on the chart between December 2023 and February 2024.

Selling below this level could see the shares drop to the $115 level. This area on the chart would likely provide support near a multi-month horizontal line that links the July 2023 peak and February 2024 trough.

Key Resistance Levels to Watch Initial upswings in the stock could run into selling pressure around $206. Coinbase shares may encounter resistance in this location near the March countertrend peak, which aligns with a range of price action on the chart extending back to last February.

Finally, a rally above this area brings the $264 level into play. This region, currently positioned just above the descending broadening formation’s upper trendline, would likely attract interest near a range of peaks and troughs that formed on the chart between April last year and February this year.

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