The share price of cryptocurrency exchange Coinbase (NASDAQ: COIN) is gearing up for a possible major breakout based on the stock’s technical formation.
Coinbase stock, which is heavily reliant on cryptocurrency market movements, has had a rough run in 2025, dropping over 30% year-to-date. COIN was valued at $175 at press time, ending the last session up 3%. On the weekly timeframe, Coinbase has rallied by almost 20%.
Looking at the technicals, the stock is forming a bullish cup-and-handle pattern, as shared by charting platform TrendSpider in an X post on April 13.
Despite recent volatility, this pattern suggests that after a prolonged consolidation phase forming the “cup” (spanning from late 2021 to early 2025), the stock could soon complete the “handle” and stage a breakout.
The key level to watch is the $360 to $370 resistance zone, which has acted as a ceiling multiple times. A clean breakout above this range would validate the cup-and-handle formation and potentially spark a powerful upside rally.
With Coinbase trading around $175.50, a breakout above $360 would represent over 100% potential upside.
Meanwhile, the Relative Strength Index (RSI) indicates the stock is currently hovering near neutral territory. This means there’s still plenty of room for upside momentum before COIN becomes overbought.
Coinbase fundamentals
Besides the bullish technical setup, several fundamental elements are aligning to support a potential rally in COIN.
For instance, the company doubled its revenue in 2024 to $6.3 billion. A staggering $4 billion came from transaction fees alone, with another $2.3 billion from stablecoins, staking, and subscriptions.
Crucially, the Securities and Exchange Commission (SEC) dropped its lawsuit against Coinbase, and the company is optimistic about pro-crypto legislation passing this year, potentially unlocking even more growth for the exchange.
At the same time, Coinbase’s P/E ratio of 33.74 as of April 11, 2025, suggests it is neither significantly overvalued nor deeply undervalued. Still, it leans toward being fairly valued with potential upside under optimistic scenarios.
Meanwhile, Wall Street analysts expect Coinbase’s price to rally in the coming year. Specifically, a consensus of 21 analysts on TipRanks projects that COIN will likely trade at an average price of $296 over the next 12 months, an upside of nearly 70%, with a ‘Moderate Buy’ rating.
In general, if the cryptocurrency market makes a significant upward move and Bitcoin reclaims the $100,000 level, Coinbase could have a strong chance of rallying. However, if the market remains weighed down by uncertainty from trade tariffs, COIN may continue to face bearish pressure.
Featured image via Shutterstock
