Coinbase (COIN) stocks hit a three-year high on Monday as investors bet that higher trading volumes and a more favorable regulatory environment under the new Trump administration could benefit the crypto exchange.

This decision comes as Bitcoin (BTCUSD) set a new record high on Monday above $88,000, and Ether (ETHUSD), the native token of Ethereum blockchain, hit a multi-year high. Rising cryptocurrency prices boost Coinbase by generating more trading activity, which in turn increases the company’s revenue through increased fees.

Going forward, Coinbase could also benefit from a new digital asset regulatory framework proposed by Republican Sen. Tim Scott, who is expected to chair the Senate Banking Committee after the GOP regains control of the upper chamber following the election , a development that would reduce compliance requirements for crypto trading and police custody platforms.

Coinbase shares rose 20% during Monday’s regular trading session, before rising nearly 3% in extended trading to around $333.

Below we break down the technical on Coinbase weekly chart and highlight key price levels that other investors might pay attention to.

Distribution of downlink channels

Since the creation of a manual head and shoulders reversed trending low over a 12-month period between June 2022 and 2023, Coinbase shares have generally been trending higher.

Most recently, the stock has traded within seven months descending channel before organizing a decisive match burst above the trend’s upper trendline last week, with subsequent buying continuing this week.

It is important to note that last week’s breakout occurred at the highest volume since early March, signaling strong conviction from key market players behind the move.

Let’s identify the main overhead levels on the Coinbase chart that investors can monitor and also highlight one important item. support area to monitor during retracements.

Key Overhead Levels to Watch

The first higher level to watch is around $369, a location on the chart where investors who purchased Coinbase shares at lower prices could look to block profits close to the eminent November 2021 peak.

Further upside could see shares retest the $430 level, an area of ​​the chart that could attract significant selling pressure as it approaches the April 2021 level. absolute record (ATH).

To project an overload level to watch above the ATH, we can use a bar model that analyzes historical price trends on the chart to predict future movements. To apply this technique, we take the stock’s trend period from June 2023 to March of this year and reposition it from September. swing low. This provides for a price target about $695.

Important support level to watch

On a withdrawal In the stock, investors should keep a close eye on the $220 level, an area where shares could attract support near the initial breakout zone, which also corresponds to a trendline that connects a range of levels comparable. price evolution on the graph dating back to May 2021.

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