Benzinga - Crypto-linked shares Robinhood Markets Inc. (NASDAQ: HOOD) and Coinbase Global Inc. (NASDAQ: COIN) have gained significantly since the beginning of 2023 on the back of a rally in the crypto markets supported by moderating inflation data released during the earlier part of the year.
What Happened: It is noteworthy that Bitcoin (CRYPTO: BTC) rallied over 44% this year while Ethereum (CRYPTO: ETH) surged over 36%. Not surprisingly, Robinhood shares have gained over 22% while Coinbase stock, too, rallied over 84% this year so far.
Also Read: How To Buy Bitcoin (BTC)
Charts of both stocks show interesting patterns.
Here’s an analysis of what to expect in the coming times:
1. Robinhood: The daily chart of Robinhood shows the stock is trading inside a triangular pattern with the range narrowing over time. The stock is likely to remain in this range for a few more weeks before a breakout can be expected. If the stock breaks out of the upper blue line as shown in the chart, that would indicate a good entry point to ride the rally. The next resistance for the stock can be expected close to the $16 level.
Source: Trading View
2. Coinbase: The daily chart of Coinbase shows the stock trading with a descending wedge pattern. The stock may continue within this short range for some more time to come before a breakout or breakdown occurs. However, the stock has been forming lower lows on the daily chart, which is not an encouraging sign for the long term. After hitting a short-term high of close to $87 in early February, the stock formed a lower high of about $73 last week. Unless the stock decisively breaks out of the channel with decent volumes, long-term entry into the stock may not be the most prudent step.
Source: Trading View
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