Coinbase (COIN) shares are off to a strong start this year following a recent 澳洲幸运5官方开奖结果体彩网:retracement.

Since 澳洲幸运5官方开奖结果体彩网: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 𓄧cryptocurren𝔉cy 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 sha𒆙res were up 2% at around $263 in early trad🎀ing Friday, after gaining more than 3% yesterday.

Below, we take a closer look at the Coinbase chart and apply 澳洲幸运5官方开奖结果体彩网:technical analysis to identify important💧 price levels worဣth 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 澳洲幸运5官方开奖结果体彩网:200-day MA to form a bullish 澳洲幸运5官方开奖结果体彩网:golden cross signal. However, since that time, the stock has retraced about half of its post-election rally, with th𓂃e price sitting roughly midway between the 200- and 50-day MAs.

While the 澳洲幸运5官方开奖结果体彩网: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 rece🍸nt move lower, indicating a lack of selling conviction.

Let’s identify important 澳洲幸运5官方开奖结果体彩网:support and resistance levels on the Coi🐻nbase 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 澳洲幸运5官方开奖结果体彩网:entry points in this area near a trendline that connects multiple 澳洲幸运5官方开奖结果体彩网: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 澳洲幸运5官方开奖结果体彩网:swing high, which also closely aligns with a range of similar price points from February ﷺto 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 澳洲幸运5官方开奖结果体彩网:lock in profits in this location near a range of 澳洲幸运5官方开奖结果体彩网:consolidation positioned just below the st🎃ock’s December high.

The comments, opinions, and analyses expressed on Investopedia are for informational purposes only. Read our 澳洲幸运5官方开奖结果体彩网:warranty and liability disclaimer for more info.

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