Coinbase shares surged 24% on Tuesday after the announcement that cryptocurrency exchanges will be included in the S&P 500. This inclusion marks a significant milestone for Coinbase, which is set to replace Discover Financial Services in the index. Despite a recent $2.9 billion acquisition of Deribit, the company reported first-quarter revenues below Wall Street expectations.
The stock has rebounded from a low of $142 and now sits around $257, positioning itself in positive territory for 2025. Technical analysis reveals a reverse head and shoulder pattern on the charts, with a breakout above the neckline occurring on Tuesday. This suggests a strong movement from larger market participants.
Key price levels to watch include:
- $245: Initial resistance, significant as it aligns with troughs from prior months.
- $273: A potential target based on the inverse head and shoulders pattern.
- $330: A critical resistance level that could serve as selling pressure near December peaks.
Support to monitor includes the $208 level, which may attract buying interest during pullbacks.
Overall, analysts suggest there might be further upward movement for Coinbase shares, contingent on overcoming these resistance levels.
