- Coinbase has confirmed a weekly breakout above the cloud and traders are watching the $256 level closely now.
- The stock formed a strong cup shape since 2022 and now builds momentum with higher volume and rising RSI.
- If COIN holds this structure then the next target around $365 could be reached on a confirmed breakout above resistance.
Coinbase Global Inc. (NASDAQ: COIN) closed the week at $234.19 after breaking above cloud resistance with strong technical confirmation. The stock is now approaching a major resistance zone near $256.46, marked by past peaks and structural boundaries. Analysts tracking its movement suggest the setup resembles a classic “cup and handle” formation.
Market observers noted this breakout came with high conviction and increasing volume, signaling strength in the move. With the price clearly closing above the Ichimoku cloud, the bullish momentum now faces its first serious test. Whether Coinbase can overcome this resistance may define the trajectory for the coming weeks.
Technical Formation Signals Strength
The weekly chart displays a clear cup-shaped recovery stretching back to early 2022, with the handle forming more recently in 2025. The symmetry of the pattern and its alignment with volume and RSI divergence add further validation. Positive divergence has been detected on the RSI, adding strength to the argument for continued upward movement.
A well-formed cup and handle typically precedes bullish breakouts, and Coinbase’s price action appears to be following this blueprint. The resistance zone at $256.46 to $266.46 has been tested multiple times but never broken with sustained momentum. This time, the technical landscape shows improving indicators, with a rising RSI and increasing money flow index activity.
Volume bars on the lower chart confirm increasing bullish interest. Recent buying pressure has been building steadily as the pattern matured. Should Coinbase break this resistance line convincingly, a measured move could place targets significantly higher, with many watching the $365.00 range as the next key zone.
Break Above Cloud Adds Momentum
Coinbase recently closed a weekly candle above the Ichimoku cloud, a significant indicator of bullish potential in longer timeframes. The cloud breakout reflects a shift in sentiment and typically confirms a reversal from bearish to bullish conditions. This is one of the first clean breaks since 2022.
This signal was reinforced by a confirmed positive divergence in momentum oscillators. The RSI broke its previous lower highs and now trends upward, aligning with historical moves that preceded sharp rallies. The breakout above cloud resistance has historically led to prolonged bullish phases in both tech and crypto-related equities.
Furthermore, the support zone below $220 has remained intact despite multiple tests, suggesting buyers are stepping in on dips. The psychological support from the round number and the Fibonacci retracement at 0.382 near $219.89 adds credibility to this level. With bullish confluence building, traders now focus on volume and confirmation.
Will Coinbase Sustain This Rally?
As the price heads toward the $256.46 resistance zone, market participants anticipate potential turbulence or consolidation. The pattern indicates breakout potential but requires follow-through. Sustained closing prices above resistance would validate the setup.
The similarity to the previous PLTR breakout is also being noted, adding fuel to the narrative. Investors now await confirmation in the form of higher highs and closing volume. Can Coinbase break through and aim for the $365.00 zone or higher in the near term?
