Stock of the Day: Coinbase

Coinbase is showing a technically constructive setup. On the H4 chart, we can identify an inverse head and shoulders formation, and importantly, the green neckline of this structure has already been broken. That breakout activates the pattern and generates a bullish signal.

What makes this formation particularly meaningful is its location. The inverse head and shoulders is not developing randomly. It is forming at the same key horizontal support zone where a previous head and shoulders structure played out back in April 2025. That historical level has already proven its technical relevance, and once again price is reacting precisely there.

When a reversal pattern appears at a major support area, its significance increases. In this case, both the structure and the location support a positive interpretation. The neckline breakout confirms that buyers have stepped in with enough strength to shift short-term momentum.

As long as Coinbase remains above the green neckline, the sentiment stays positive and the bullish scenario remains in play. However, a move back below the neckline would invalidate the breakout, cancel the inverse head and shoulders formation, and bring negative sentiment back into the picture.

For now, the structure favors the bulls. The pattern is active, the level is technically important, and the bias remains constructive while price holds above the broken neckline.

Source: https://www.axiory.com/analytics/stock-of-the-day/stock-of-the-day-coinbase-1