Coinbase (Coin) shares soaring on S&P 500 designation

Coinbase (Coin) shares rose sharply on Tuesday after the news came out after the announcement of the inclusion of the cryptocurrency exchange in the S&P 500 index.

After the stock price surged on Tuesday, news said Coinbase would be added to the S&P 500. Coinbase, the largest crypto exchange in the United States, will replace Discover Financial Services (DFS) in the benchmark index and will start trading next Monday. This is an important milestone for the company, with Coinbase going public in April 2021. Less than a week after the announcement, the company announced that it had agreed to acquire CrierPto Optif to acquire CrierPto Optif for $290 million. On the same day, the company released its first-quarter financial report, with performance lower than Wall Street's expectations.

Coinbase shares rose 24% on Tuesday to close at about $257. Thanks to this rise, the stock turned positive in 2025, rebounding about $142 from its early April lows.

Next, we will analyze Coinbase’s technical charts and point out key price levels that investors should focus on.

Breakthrough in the reverse head and shoulders form

Coinbase formed a counter-head and shoulders pattern on the chart between March and May, with prices breaking through the neckline on Tuesday.

Even before today's rally, the stock had above average trading volume in the first three trading days, indicating that larger market participants are already accumulating stocks ready for major price changes.

We will identify the key resistance areas on the Coinbase chart to observe their potential for further upwards and identify key support levels worth paying attention to during possible declines.

Key resistance areas

The $245 level is a key area for trading on Tuesday as it approaches two closely linked slots formed on the charts in December and January.

As the stock price easily breaks this level, the stock could rise to the $273 level. Investors who buy stocks near the area may consider setting up sell orders when approaching this level. On the chart, this level connects a series of peaks and troughs that extend into March last year.

This level also corresponds to the measurement of a moving target, which is derived by calculating the depth of the inverse head and shoulders morphology and adding it to the neckline of the morphology. For example, add $65 to $208 and get a $273 target.

A higher rise could trigger a rally until $330. This area on the chart could create selling pressure near several peaks formed by the stock's December highs.

Main support levels worth paying attention to

During the decline of Coinbase stock, investors should pay attention to the $208 level. This position on the chart could spark buying interest in retesting of the head, shoulders and neckline, which could become a major support area after Tuesday’s breakout.

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