Coinbase Global Inc. COIN has just flashed a dreaded Death Cross, the technical indicator that sends shivers down bullish spines.
The stock’s 50-day simple moving average (SMA) has plunged below the 200-day SMA, historically a signal of bearish momentum.
But before you start shorting Coinbase’s stock into oblivion, there’s more to the story.
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COIN’s Technical Setup: Bearish Or Oversold?
Coinbase stock has had a brutal run, tumbling 31.59% over the past year, down 33.61% year-to-date, and shedding 19.66% in just the last month.
At $172.79, the stock is trading well below key moving averages – an eight-day SMA of $178.71, a 20-day SMA of $185.02, a 50-day SMA of $227.70 and a 200-day SMA of $230.43.
Technically speaking, the trend leans bearish.
However, conflicting signals are under the surface. The Moving Average Convergence Divergence (MACD) indicator is negative at 13.68, suggesting a bearish outlook.
Meanwhile, the Relative Strength Index (RSI) is hovering at 37.84, dangerously close to oversold territory, which could invite dip buyers.
Institutional Moves: XRP Futures On The Horizon
Adding fuel to the fire, Coinbase Institutional is making big moves in the derivatives market, filing with the Commodity Futures Trading Commission (CFTC) to roll out XRP XRP/USD futures, reported Coindesk.
Set to launch on April 21, the cash-settled contracts (trading under the ticker XRL) will offer a regulated way to gain exposure to the controversial yet liquid digital asset. This could be a game-changer for institutional adoption.
What’s Next For COIN?
So, is COIN stock’s Death Cross a death sentence?
While the technicals scream caution, buying pressure remains, and the XRP futures launch could reignite investor interest.
With mixed sentiment, traders may want to watch for confirmation before making their next move.
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