Coinbase Stock Price Forecast: Will It Keep Soaring

Key Insights:

• Coinbase stock price has surged by 50% this year.
• The surge is because of the ongoing crypto market bull run.
• The next catalyst for the share will be its quarterly earnings.

Coinbase stock (COIN) price surged this week, reaching its psychological milestone of $400 as the crypto market rallied. COIN has surged by 50% this year, and by 175% from its lowest point in April. Keep on reading to reveal why the stock still has more upside, even as the crypto rally has stalled.

Coinbase Stock Price Technicals Point to More Gains

The daily timeframe shows that the Coinbase stock price has surged since April, when it bottomed at $141. It has soared by nearly 180%, and is hovering at its highest point since 2021.

Technicals point to more gains in the coming months. It formed a golden cross pattern on May 29 as the 50-day and 200-day moving averages crossed each other. That’s one of the top bullish patterns as it signals that bulls have prevailed.

The stock also formed a cup-and-handle pattern, with its upper side at $350 and its lower side at $141, giving it a depth of 61%. Therefore, measuring the same distance from the upper side means that the COIN stock price will likely jump to the key resistance at $563.

Coinbase share price has also formed an inverse head-and-shoulders pattern, with its neckline at $350. Moreover, the Average Directional Index (ADX) has jumped to over 40, a sign that it has strong momentum.

Therefore, these patterns and indicators suggest further gains in the coming months. A drop below the neckline at $350 will invalidate the bullish COIN stock price forecast.

COIN Stock to Do Well Despite the Crypto Market Rally Stalling

The Coinbase stock price has surged in recent months due to the ongoing crypto market rally. This rally pushed Bitcoin price to a record high of over $123,000 on Monday, and the market capitalization of all coins to over $3.7 trillion.

COIN performs well during a crypto rally due to the surge in volume that occurs when many retail and institutional investors are buying. Additionally, the company has direct exposure to Bitcoin. That’s because it’s the largest corporate holder with 9,267 BTC coins, valued at over $1.09 billion.

However, recently, there have been signs that the crypto market rally has run out of steam. The Bitcoin price crashed to $117,000 on Jun 15th. Top altcoins like Pump, MemeCore, Fartcoin, and XDC also plummeted by over 10%.

Still, this retreat could be temporary since Bitcoin and Ethereum have strong fundamentals. Bitcoin ETF inflows surged to a record high, while its exchange supply has dropped to the lowest point in years.

Coinbase Earnings Ahead

The next important driver for Coinbase stock will be released on July 31st, when the company publishes its financial results. These numbers will provide more information on the company’s performance during the second quarter.

Chances are that its business slowed down in Q2 because Bitcoin and most altcoins remained in a tight range during that period. Third-party data also indicates that the volume was not particularly high.

Still, on the positive side, Coinbase has diversified its business such that other segments make money in all market conditions. For example, it has become the biggest custodian of crypto ETFs and a major player in crypto subscriptions and staking.

Base, Coinbase’s layer-2 network, has also become the biggest player in the sector in terms of volume.

Yahoo Finance data shows that most analysts anticipate Coinbase’s second-quarter revenue will be $1.66 billion, up by 14.45% from a year earlier. Its earnings per share (EPS) could also move to $1.39 from 14 cents last year.

Will Coinbase Stock Price Soar More?

Coinbase stock price has surged this year, transforming it into a $100 billion company. This growth was driven by the ongoing crypto market bull run and its diversification efforts, including the acquisition of Deribit, a key player in the derivatives market. This rally is likely to continue in the coming months.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.