Coinbase stock price rare pattern points to a 60% jump to $550

Key Insights:

• Coinbase stock price has formed a golden cross and a cup-and-handle pattern.
• Base Blockchain has gained market share in the layer-2 industry.
• Analysts are highly bullish on the Coinbase share price.

Coinbase (COIN) stock price hovered below resistance after surging nearly 150% from its April low.

The stock consolidated near its peak, forming multiple bullish technical patterns with a potential upside of 60%.

Technical charts, growing Base adoption, and analyst upgrades support a strong outlook for COIN.

Coinbase Stock Golden Cross and Cup and Handle Pattern Forms

The daily timeframe points to further upside in the next few weeks. It formed a golden cross pattern on May 28 as the 50-day and 200-day Exponential Moving Averages (EMA) crossed each other. This pattern often leads to more gains over time.

COIN formed the last golden cross in October when it was trading at $200, then jumped by nearly 70%.

The stock has also formed a cup-and-handle pattern, a common continuation sign. This pattern comprises a rounded bottom with two distinct peaks, followed by a consolidation. In this case, the distance between the cup’s upper and lower sides is about 58%.

Therefore, measuring the same distance from the cup’s upper side brings the target at $550, up by about 60% from the current level.

Additionally, Coinbase has formed an inverse head-and-shoulders pattern, a highly bullish continuation pattern.

Crypto Bull Run as a Catalyst for COIN Shares

A potential catalyst for Coinbase stock price will be the upcoming crypto bull run, which will happen once Bitcoin breaks out.

Fundamentals and technicals point to a strong Bitcoin breakout. Bitcoin demand continues to rise, with ETF inflows rising and the number of Treasury companies rising from 1 in 2017 to 51 today.

At the same time, the supply of Bitcoin in exchanges has plunged to the lowest level in years. As such, rising demand and falling supply will likely lead to more gains soon.

Additionally, Bitcoin has formed a cup-and-handle and a bullish flag pattern, pointing to further gains, potentially $144,000.

A Bitcoin price breakout would likely lead to more gains among altcoins like Ethereum, Solana, and Cardano. Historically, Coinbase stock price does well when cryptocurrencies are rallying.

A crypto rally is accompanied by higher trading volume as retail and institutional investors participate, and vice versa. For example, it crashed to $33 in 2022 as Bitcoin fell below $16,000.

Analysts are Bullish on COIN Stock

Meanwhile, analysts are highly bullish on Coinbase stock because of its market share in key areas like exchanges and custody services. Oppenheimer, Bernstein, and JMP Securities have an outperform rating, while those at Benchmark, Renaissance, and Rosenblat have a buy rating.

The average revenue estimate among analysts is that its revenue will jump by 13.50% this year to $7.45 billion, followed by $8.15 billion in 2026. Coinbase has a long history of beating analysts’ estimates, indicating that its growth will likely exceed this.

Base is Gaining Market Share in the Layer 2 Industry

Another often overlooked catalyst for the Coinbase stock price is Base, the layer-2 network it launched in 2023. Base has become the biggest layer-2 network, overtaking players like Polygon and Arbitrum.

Data shows that Base has a stablecoin supply of $4.1 billion, a 1.1% monthly increase, and 3.3 million stablecoin addresses. It handled over $162 billion in stablecoin transactions in the last 30 days.

More data shows that Base handled over $28 billion in DEX volume in the last 30 days. This made it the fourth-biggest chain after BSC, Solana, and Ethereum.

The implication is that Base’s valuation continues to rise, benefiting Coinbase. For example, Arbitrum, smaller than Base, has a diluted valuation of $3.43 billion, while Optimism is valued at over $2.4 billion.

Coinbase’s stock price could be on the verge of a strong rally this year. It has strong technicals, its revenue is growing, and analysts are largely bullish. Additionally, the company’s Base layer-2 network has gained market share over the past two years, displacing top chains such as Cardano, Avalanche, and Cronos.

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.