Watch These Coinbase Price Levels as Stock Rallies to Start 2025

Coinbase (COIN) shares are off to a strong start this year following a recent retracement.

Since Donald Trump’s election win in early November, the stock has gained more than 30% amid optimism that his administration and a crypto-friendly Republican Congress will position the United States as a global cryptocurrency leader, creating a more favorable regulatory environment for exchanges like Coinbase.

Looking ahead, the company also sits well positioned to benefit for increased trading activity, with Bitcoin (BTCUSD) still hovering just below the $100K level and other large-cap altcoins, such as Ethereum (ETHUSD) and Solana (SOLUSD), performing strongly since the election.

Coinbase shares were up 2% at around $263 in early trading Friday, after gaining more than 3% yesterday.

Below, we take a closer look at the Coinbase chart and apply technical analysis to identify important price levels worth watching out for.

Retracement After Setting 3-Year High

Coinbase shares set a new three-year high in early December, shortly after the 50-day moving average (MA) crossed above the 200-day MA to form a bullish golden cross signal. However, since that time, the stock has retraced about half of its post-election rally, with the price sitting roughly midway between the 200- and 50-day MAs.

While the relative strength index (RSI) confirms weak price momentum with a reading around 40, the stock has shown a historical tendency to bounce when the indicator falls to this level. Moreover, below-average volumes have accompanied the recent move lower, indicating a lack of selling conviction.

Let’s identify important support and resistance levels on the Coinbase chart that investors may be eyeing early in the first quarter.

Key Support Levels to Watch

The first support level to watch sits around $220, just below the 200-day MA. Investors may look for entry points in this area near a trendline that connects multiple peaks and troughs on the chart between March and October.

The bulls’ inability to defend this level could see the shares decline to around $187, This location on the chart may attract support near the prominent December 2023 swing high, which also closely aligns with a range of similar price points from February to November last year.

Important Resistance Levels to Track

If the shares move higher this month, investors should initially monitor the $283 level, a region on the chart where they could encounter selling pressure near the March peak, the mid-November retracement low, and the nearby 50-day MA.

A decisive close above this level could see a move to around $342. Traders who purchased shares during the recent pullback may look to lock in profits in this location near a range of consolidation positioned just below the stock’s December high.

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As of the date this article was written, the author does not own any of the above securities.