Coinbase Stock Eyes Breakout: Cup and Handle Pattern Signals Bullish Continuation
Coinbase Global Inc. (NASDAQ: COIN) ended the week at $234.19, marking a decisive technical breakout after moving above the Ichimoku cloud resistance. This bullish move comes amid increasing investor confidence and heightened volume activity. The breakout is now approaching a historically strong resistance zone near $256.46, an area that has repeatedly capped rallies in the past. With this level now in sight, analysts are watching closely to see whether Coinbase can break above and continue its bullish trajectory.
Market watchers have identified a classic “cup and handle” pattern developing over the past few years. The cup began forming in early 2022, representing a long-term base building process following the broader crypto market sell-off. The handle began to take shape in early 2025 as the price moved sideways and consolidated gains. This pattern is typically seen as a bullish continuation signal, and Coinbase’s current structure fits the textbook definition.
What’s fueling this bullish optimism isn’t just the pattern itself. Momentum indicators like RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) are both flashing green. RSI recently broke out of a downward-sloping trendline and is now trending upward, showing strengthening bullish momentum. Likewise, MACD has made a bullish crossover, further validating the possibility of continued price increases in the near term.
Volume, which is a critical component in confirming technical breakouts, has also picked up meaningfully. As Coinbase broke above the Ichimoku cloud, volume surged, suggesting that institutions and retail investors are beginning to re-enter the market. When breakouts are supported by rising volume, they tend to have more staying power, and the price action tends to sustain its upward trend. This adds credibility to the ongoing move.
Historically, Coinbase has struggled to maintain rallies above the $256.46–$266.46 range, which represents a major structural resistance zone. This zone was tested multiple times in 2023 and 2024 without a successful breakout. This time, however, conditions are different. Technicals are stronger, sentiment is shifting, and the broader crypto ecosystem appears to be regaining momentum as Bitcoin and other altcoins show renewed strength.
Adding to the bullish thesis is the Ichimoku cloud breakout on the weekly timeframe. This indicator is widely followed by long-term technical traders and is considered a reliable trend reversal signal. A sustained move above the cloud typically marks a shift from bearish to bullish conditions. In Coinbase’s case, this is the first clean weekly cloud breakout since early 2022, and it suggests that the stock may be entering a new bullish phase.
Below the current price, strong support has developed near $220, which aligns with the 0.382 Fibonacci retracement level at $219.89. This level has been tested multiple times in recent months and has held firm, indicating that buyers are stepping in on every dip. This support zone gives traders confidence that even if the price faces short-term pullbacks, the overall structure remains bullish as long as this level holds.
Another positive sign is the increase in the Money Flow Index (MFI), which suggests that capital is flowing back into the stock. Higher money flow typically correlates with sustained upward movement and investor interest. As more traders recognize the bullish pattern forming, the likelihood of a FOMO-driven rally increases, particularly if the price breaks above $266 with volume.
Comparisons are also being made to other recent breakout patterns in tech and crypto-related equities, such as Palantir (PLTR) and MicroStrategy (MSTR). These stocks also formed cup and handle structures before experiencing major upward moves. If Coinbase follows a similar trajectory, price targets of $300 to $365 become realistic in the medium term. Some optimistic analysts even point to longer-term targets beyond $400 if macroeconomic and crypto sector conditions remain favorable.
In summary, Coinbase is showing all the right signs of a bullish breakout in progress. A well-defined cup and handle formation, a breakout above the Ichimoku cloud, strengthening RSI and MACD, and a strong support base below all contribute to a favorable setup. The key level to watch now is the resistance zone near $256.46. A decisive break above this range with continued volume and positive momentum could propel Coinbase into a powerful new uptrend. Investors, traders, and analysts alike will be watching closely in the coming days and weeks.