Coinbase Rebounds to IPO Price, Eyes Bigger Gains as Bullish Chart Pattern Unfolds
Coinbase (COIN) has staged an impressive comeback, surging to $380 and matching the valuation it achieved during its Nasdaq debut on April 15, 2021. The crypto exchange giant’s rebound from the depths of the 2022 bear market, when it hit lows of $31.55, highlights renewed investor confidence, according to TradingView data.
This rally has sparked a major technical development: Coinbase has broken out of an inverse head-and-shoulders (H&S) pattern on its weekly chart. Technical analysts suggest this classic reversal formation could push the stock as high as $660 in the months ahead.
Decoding the Inverse Head-and-Shoulders
The inverse head-and-shoulders is a well-known bullish indicator that signals the end of prolonged downtrends. It features:
- A deep central trough (the head) — the point of maximum selling pressure.
- Two shallower troughs (the shoulders) — forming on either side as selling subsides.
A confirmed breakout occurs when prices rise above the “neckline,” a resistance level drawn between the highs separating the troughs. Trading volume usually shrinks during the formation but swells sharply on the breakout, reflecting renewed buying enthusiasm.
Applying the “measured move” technique, analysts estimate the potential rally by adding the distance from the neckline to the head to the breakout point. For Coinbase, that implies an upside target near $660.
Strong Technical Confirmation
Coinbase has decisively surpassed its neckline resistance and continues to consolidate above it, strengthening the case for further gains. Volume activity, which was relatively muted during the bear phase, began climbing noticeably in April 2024 as the right shoulder of the pattern completed, adding conviction to the bullish setup.
Analyst Views Align with Technical Picture
Wall Street sentiment has become more upbeat alongside the technical signals. Oppenheimer recently lifted its price target on COIN to $395 from $293, keeping an “outperform” rating. Analysts cite improving fundamentals and an expanding institutional presence in crypto markets as key reasons for optimism about the stock’s future.
