Cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) finished Monday’s trading at $293.34, up to $12.73 (4.54%) and up by 38.67 (15.19%) over the previous five stock trading sessions.
Potentially, one of the factors in the stock’s recent rise is Bitcoin (BTC) which is also trading 10% higher over the last week coupled with the U.S. Securities and Exchange Commission (SEC) announcement of a Bitcoin futures ETF.
Incidentally, the shares of the COIN are trading above their 20 and 50-day SMA, which typically signals an upward trend. A positive short-term trend seems to be developing based on the company’s previous performance and a price above those two SMAs.
COIN trading range
Currently, the technical outlook seems favorable in both the medium and short-range time frames for COIN, while the long-term trend also looks encouraging. Although Coinbase has been trading in the $224.51 – $296.98 range, which is quite wide, it’s presently at the top of its recent trading range in the last month.
Furthermore, the volume has also risen significantly in the past several days, ideal for a sustained upward trend. However, it does not present a decent entry opportunity at the moment. Since prices have been extended to the upside lately, it may be better to wait for a period of consolidation or a pullback before considering an entry.
Nevertheless, multiple trend lines and significant moving averages in various periods create a support zone between $252.14 and $253.23. In addition, a support zone at a lower level is observed at $230.18 from a horizontal line in the daily time frame.
Wall Street experts verdict
In the last three months, 17 Wall Street stock trading experts have given 12-month price predictions for Coinbase. It is projected to reach a median price of $340.73, with a top of $500 and a low of $160.00. The average price target is 18.04% higher than the stock’s current trading price of $293.34.
COIN has seen twelve TipRanks experts reiterate their ‘Buy’ recommendations in the past three months, while three have recommended ‘Hold.’ However, two of the experts advised ‘Sell,’ which is noteworthy.
Consequently, most analysts think Coinbase is a ‘moderate buy,’ with an average price forecast of $340.73, a gain of 16.16% from the most recent price of $293.35.
Interestingly, despite the company’s recent upswing and positive sentiment, analysts have reduced their average price target from $350.51 to $340.73 and their lowest price target from $220 to $160 since the last time we reviewed the stock.
Coinbase launches its NFT marketplace
Recently, the firm announced on October 12th, 2021, a marketplace for non-fungible tokens (NFTs). For those who want early access to the NFT marketplace, the exchange has set up a waiting list for the market, which will allow users to mint, collect, and trade non-fungible tokens.
A number of “social features” will be included in the marketplace. It will be able to tap into the so-called creator economy, which refers to people who make money by uploading content online. Coinbase’s entrance into the NFT space may also provide it a chance to increase the variety of its revenue streams in the future.
Remarkably, transaction fees accounted for 88% of the company’s revenue in the second quarter of 2021 [PDF], and 96% of the company’s sales in 2020 came from the fees it collected, according to a company filing.
Bitcoin futures ETF approval
Whatsmore, the recent approval of a Bitcoin futures ETF will allow investors to speculate on the price of BTC without buying any of the asset; this move is expected to lead to more investment in digital assets and may result in more trading on platforms such as Coinbase.
Kate Rooney from CNBC confirmed:
“There are a group of similar futures-based Bitcoin ETFs waiting in the wings, and they could go live by the end of this year.”
“Grayscale’s Bitcoin trust it’s the world’s largest Bitcoin fund with about 3.5% of all global Bitcoin supply in that fund. It’s been the main on-ramp for investors like Kathy Wood, for example, to get exposure to crypto. Grayscale confirmed today that it does plan to convert that fund to a spot ETF.”
Elsewhere, digital asset marketplace Bakkt Holdings Inc., after announcing the completion of its merger with special purpose acquisition company VPC Impact Acquisition Holdings, began trading on the New York Stock Exchange (NYSE) under the ticker symbol “BKKT” on October 18.
As of Monday’s close, the institutional and retail-facing digital asset platform established by Intercontinental Exchange (NYSE: ICE) had lost 6.4%. In fact, BKKT increased from $9.45 to $9.77 in the first 30 minutes of trading before traders immediately took profits, leading prices to fall.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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