Coinbase (COIN): Charting the Course Through Momentum and Volatility

Technical Analysis: The Current Landscape

Full disclosure: I am by no means a technical analyst. Frankly, when it comes to deciphering candlestick patterns and squiggly lines, I rely on a healthy dose of Perplexity to help make sense of the visual labyrinths that are trading charts. My preferred weapon of choice for chart generation is TradingView, replete with indicators that, if I’m honest, I’m still learning to properly pronounce, let alone interpret.

At times, these technical indicators can strike me as every bit as impenetrable as the intricate science of Hindu astrology, with its heavenly bodies allegedly capable of mapping out the destinies of eight billion souls. Do I place unwavering faith in such predictions? Hardly. But I’m equally short on reasons to outright dismiss them.

But I digress. For me, these analyses are less about cosmic certainty and more about stacking the odds in my favour, helping me spot those potentially opportune moments to either add to my investments or judiciously take money off the table.

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The attached chart reveals a fascinating technical narrative for Coinbase Global (COIN) as of July 2025. Trading at approximately $394, the stock demonstrates classic characteristics of a momentum-driven equity caught between powerful fundamental drivers and technical warning signals.

The chart showcases a series of rising and falling wedge patterns that have defined COIN’s price action throughout 2024 and into 2025. These wedge formations, particularly evident in the price structure, suggest periods of consolidation followed by explosive moves - a hallmark of highly volatile technology stocks in nascent sectors.

RSI: The Overbought Conundrum

The Relative Strength Index (RSI) currently sits at 71.83, firmly in overbought territory. This reading aligns with recent technical analysis suggesting that COIN has experienced sustained buying pressure that may be nearing exhaustion. However, the RSI’s behaviour in strong uptrends often defies conventional wisdom - stocks can remain overbought for extended periods during secular bull markets.

The RSI’s position above 70 traditionally signals caution, as it indicates that recent buying has been excessive and a correction may be imminent. Yet, for momentum stocks like COIN, RSI readings above 70 can persist, particularly when underlying fundamentals support continued institutional and retail interest.

Price Targets and Projections