Coinbase Stock Rips 8.7%, But Warning Signs Emerge

Coinbase stock (COIN) has seen an explosive 8.71% surge in a single session, but experts warn that this may be a trap.

The stock blew through its session open at $176.10 and printed a high of $196.47 before settling at $195.03 as of 10:13 UTC.

However, beneath the surface, there are warning signs. The taker buy/sell ratio is sitting at 0.56, indicating that active sellers outpace aggressive buyers by nearly two to one in the past hour alone. Open interest dropped 5.44% in 24 hours, suggesting positions are being closed rather than opened.

This technical analysis suggests that COIN's price may be due for a pullback, particularly given its deeply overbought territory according to stochastic readings at 96 and RSI at 59.56.