Coinbase (COIN) Stock Is Enjoying a Breakout Moment

Shares of the crypto exchange have soared nearly 47% over the past month, outpacing Bitcoin's 22% gain and leaving the S&P 500's 9% rally in the dust.

Coinbase Global Inc (NASDAQ:COIN) is enjoying a breakout moment - on the chart and in the headlines.

Shares of the crypto exchange have soared nearly 47% over the past month, outpacing Bitcoin's 22% gain and leaving the S&P 500's 9% rally in the dust.

The catalyst? A one-two punch: its upcoming May 19 inclusion into the S&P 500 and its acquisition of crypto options giant Deribit.

Coinbase’s technical setup is also lighting up.

Coinbase's stock is in a solid bullish trend as it trades above its 8-day simple moving average (SMA) of $215.29, 20-day SMA of $203.17, and 50-day SMA of $191.77. The stock has also broken above key resistance in its 200-day SMA, which sits at $225.25, recording a bullish breakout.

In terms of momentum, the Relative Strength Index (RSI) stands at 75.24, suggesting COIN stock may be in overbought territory - but strong buying pressure continues to fuel the rally. The Moving Average Convergence Divergence (MACD) indicator is at 11.81, highlighting bullish momentum.

Coinbase’s first quarter earnings, while mixed, delivered earnings per share of $1.94 versus the $1.85 estimate, a 4.86% surprise. Revenue came in lighter than expected at $2.03 billion versus $2.12 billion. But Wall Street didn't blink.

The post-earnings move was driven largely by Coinbase becoming the first pure-play crypto firm to join the S&P 500 Index - a major milestone that could significantly lift institutional ownership, which remains low relative to Coinbase's scale.

The announcement of its $2.9 billion acquisition of Deribit - a global leader with 75% market share in crypto options and $30 billion in open interest - only sweetened the deal for investors.

If technicals are any guide, COIN stock may not be done yet - though traders will want to keep a close eye on that rising RSI.