From a snapshot perspective of market sentiment, cryptocurrency exchange and services provider Coinbase Global Inc (NASDAQ:COIN) does not appear to be walking on auspicious grounds.

Instead, circumstances seem quite bearish. Still, a rotation in opinion may be materializing among smart money traders or the so-called whales. As such, bullish speculators may have a fast-approaching opportunity in Coinbase stock.

Again, at first glance, the notion of imminent upside appears far-fetched, to say the least. One of the more damning indicators is the death cross. A phenomenon that describes when a shorter-running moving average slips beneath a longer-running average — typically the 50-day moving average falling below the 200 DMA — the death cross symbolizes a deceleration of momentum. In some cases, it could also signal the beginning of a prolonged downturn or an outright bear market.

To be clear, Coinbase stock has yet to officially print a death cross — but, it’s very much on the cusp of doing so. At time of writing on Friday, Coinbase’s 50 DMA lands at $239.54, while the 200 DMA sits at $232.26 — a gap of only 3.13%. Today’s big drop, contributing to a five-day loss of roughly 12%, has accelerated the likelihood of the dreaded signal flashing.

What’s more, technical analysts have warned certain cryptos themselves are at risk of printing the death cross. Since Coinbase stock in many ways represents a proxy of the broader crypto complex, an erosion of confidence in the underlying benchmark would seem to bode poorly for Coinbase stakeholders.

Why Coinbase Stock Could be Offering a Contrarian Setup

Despite the ominous-sounding nature of the death cross, in certain situations, …

Full story available on Benzinga.com