Coinbase Global (COIN) gained attention today with a edged gain of 13.52% in one session, rebounding from multi-month lows to close near $183.94. It’s the kind of move that attracts attention, and rightly so. But before anyone starts charting a bottom, the daily chart tells a more complicated story where the real test hasn’t even begun yet.

Let’s break down what we’re actually looking at.

Earlier this cycle, COIN peaked at $444.65 – a remarkable performance for a cryptocurrency exchange operator that processes billions in digital asset transactions. Then came a methodical rest, a months-long descent that crossed level after level. The two who are most vital now are sitting $212.62 AND $232.20and both deserve grave attention.

These are not arbitrary numbers. Both levels were significant support zones in the earlier stages of stock consolidation. Price has spent a lot of time respecting them on their way to the top, which is why their eventual breakdown matters. When the support is broken and the price is below it, the same level turns into overhead resistance. This is exactly the situation COIN finds itself in today.

So what does today’s 13% augment actually mean? Honestly, it’s too early to talk about it. A single powerful candle after an extended decline could reflect a true accumulation, a miniature squeeze, or simply an oversold bounce preying on sellers at higher prices. The volume is worth noting (almost 23.8 million shares), but conviction won’t be confirmed until price starts to interact with overhead levels.

The first real test comes at $212.62. If buyers manage to regain this level and, more importantly, stay above it at the end, the case for a justified bounce begins to emerge. Clean it and $232.20 becomes another obstacle. The bulls need to fall before the chart changes from “downtrend bounce” to something more constructive.

If you are considering going long, a more disciplined approach is to wait for a confirmed bounce of $212.62 rather than follow today’s momentum. A pullback towards the $175-$180 range with a stop below recent lows provides a defined level of risk for those with a higher tolerance. Meanwhile, bearish investors should watch for a failed rally at any of the resistance levels as a potential signal of a re-entry, stopping just above the level that price is testing.

The setup is really compelling right now. COIN has shown it can move – today it proved it. Whether this bounce has legs or simply provides sellers with a better exit price is a question that the next few sessions will answer.