As El Salvador becomes the first country to adopt bitcoin as legal tender, shares of Coinbase Global (COIN) are dropping in early trading Tuesday.
Let's take a look at COIN's technicals.
The charts of COIN are showing some improvement, showing us a base pattern which, while not particularly big, can give us some positive results.
In the daily bar chart of COIN, below, we can see a four-month saucer base pattern. The shares found buyers in the $225-$220 area. COIN is now trading above the 20-day and the 50-day moving averages. These are shorter averages but are more sensitive to picking up a new trend.
The On-Balance-Volume (OBV) line shows a developing uptrend from early August telling us that buyers of COIN are becoming more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line in a bullish alignment.