Coinbase’s Recent Performance
Coinbase Global, Inc (NASDAQ: COIN) has been trading slightly lower alongside Bitcoin (BTC/USD) and Ethereum (ETH/USD), which saw retracements of over 3% and 5.5%, respectively as the week came to a close. Despite this, Coinbase has shown robust resilience compared to the wider crypto market. On Thursday, Coinbase soared to a 27-month high of $276.38, contrasting Bitcoin’s 10% decline from its recent peak.
Analyst’s Positive Outlook
JMP analyst Devin Ryan has upheld an optimistic Market Outperform rating on Coinbase, with a $300 price target. Since initiating coverage in 2021, Ryan has highlighted Coinbase’s potential growth prospects beyond being just a cryptocurrency exchange. He foresees significant opportunities in the exchange business as the market continues to evolve, with rising prices correlating positively with user activity levels.
Market Trends and Investor Actions
Despite Coinbase’s strength, Cathie Wood’s Ark Invest recently sold 199,526 shares of Coinbase across various funds, amounting to $52.27 million. Ark Innovation ETF (ARKK) has been lagging behind the broader market trends. In response, those bearish on ARKK may consider the AXS Short Innovation Daily ETF (SARK) as a way to capitalize on potential downsides.
Technical Analysis of Coinbase
In terms of technical analysis, Coinbase was consolidating on Friday with lower-than-average volume, potentially forming a doji candlestick on the daily chart. This formation suggests a potential reversal in the stock’s downward trend, hinting at a rebound in the coming days.
- Friday’s consolidation, following a 27% surge earlier in the week, has positioned Coinbase in a possible bull flag pattern on the daily chart. A breakout from this formation on increased volume could propel the stock towards the $318 mark in the future.
- By forming a higher high above the most recent low on March 13, Coinbase invalidated a brief downtrend. A further upward move next week, coupled with a breakout from the bull flag, could establish a new uptrend, with Friday’s low acting as a higher low point.
- Bullish traders are eager to see strong buying volume drive Coinbase above Thursday’s high to confirm the potential uptrend. Conversely, bears are eyeing increased selling pressure to push Coinbase below the eight-day exponential moving average, potentially reversing the bullish momentum.
- Key resistance levels for Coinbase are at $263.34 and $276.38, while support levels lie at $248.49 and $237.01.
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