A look at Coinbase, Riot stocks like Bitcoin and Ethereum signal indecision
Coinbase Global, Inc COIN and Riot Blockchain, Inc RIOT were traded down over 2% and 3% respectively on Monday in sympathy with Bitcoin BTC/USD and Ethereum ETH/USDwhich fell above 2% and 4% respectively.
The top cryptos, when their charts are compared to each other, show indecision on larger timeframes. On the weekly chart, Bitcoin has rejected the 200-day simple moving average (SMA) over the past six weeks. However, Ethereum shot up above the 200-day SMA in the week beginning July 11 and has remained trading above the level.
The 200-day SMA is an important watch indicator, and with Bitcoin trading below the level and Ethereum above it, technical traders and investors are likely to feel skeptical about the direction the crypto sector is headed in the coming weeks and months.
Coinbase and Riot also showed some signs of indecision on Monday, with both crypto-related stocks looking to print doji candlesticks on the daily chart. The positive news is that the doji candlesticks on Coinbase and Riot may signal that the next higher lows are in for the stock because Coinbase and Riot are trading in confirmed uptrends.
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The coin base chart: Coinbase reversed course to an uptrend on June 30 and posted its most recent high low on July 20 at $79, and the last confirmed higher low was formed at the $50.34 level on July 14. If Coinbase prints its next highest low on Monday, traders can expect the stock to move higher on Tuesday and print another higher high over the next few days.
Coinbase’s doji candlestick pressed on lower-than-average volume, coinciding with the theory that the stock is consolidating and running out of sellers. At press time, about 5.33 million Coinbase shares had changed hands, compared to the 10-day average of 15.27 million.
Coinbase is trading above the eight-day and 21-day exponential moving averages (EMA), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 50-day SMA, indicating that long-term sentiment is bullish.
Coinbase has resistance above at $83.82 and $112.14 and support below at $60.99 and $40.83.
The Riot Chart: Riot, like Coinbase, turned to an uptrend on July 1st and printed its most recent high on July 22nd at $7.87 and last confirmed higher lows at the $4.52 level on July 13th. Like Coinbase, Riot’s doji candlestick on Monday could indicate the next highest low has been set, and the stock will trade higher over the next few days to continue its uptrend.
Riot also traded on lower-than-average volume on Monday. At press time, Riot’s volume was around 8.84 million, compared to the 10-day average of 22.49 million.
Riot has resistance above at $7.25 and $9.65 and support below at $5.54 and $4.36.
See also: Mark Cuban On The Nightmare Waiting For The Crypto Industry
