Coinbase stock prices (COIN) have almost doubled since their lowest point in June, with the possibility of a much larger rise this year, according to a mix of technical and fundamental indicators.
Symmetrical Triangle Reversal COIN
COIN has been going through a strong bullish reversal after falling almost 90% from its record high of $ 368.90 in November 2021.
Coinbase stock prices rose more than 95% to $ 75.27 from the close of July 20 when it was measured from its May 12 local low of $ 40.83. Its recovery led to a symmetrical triangle pattern where prices formed a series of lower highs and higher lows.
Symmetrical triangles in the downtrends usually prove to be a bearish continuation pattern. They decide after the price breaks down below their lower policy lines to fall even further. But in rare cases, a symmetrical triangle could form at the end of a declining trend, leading to a sharp bullish reversal.
As it seems, COIN has already entered the refractive index of its symmetrical triangle rotation pattern. In particular, Coinbase closed equities above the upper line of the plan on July 28, following an increase in trading volume, as shown below.
COIN is currently testing $ 80 as a temporary resistance while looking at a further increase towards $ 135. The profit target is measured after the maximum distance between the upper and lower direction lines of the symmetrical triangle has been calculated and the result added to the breaking point.
The triangle’s target seems to be closer to the 200-day exponential moving average COIN (200-day EMA; blue wave pictured above) near $ 153. It increases the psychological possibility that COIN would bullish wicks towards $ 153 if it reaches $ 135 this year.
That would mean a 102% increase from today’s price.
Currency base valuation: First quarter profit
Coinbase’s first-quarter profit was overwhelming due to weaker-than-expected revenue and a significant decline in monthly trading users.
The company has not disclosed any cost management plans in the call, but a report published by the Financial Times in June shows that it would reduce the number of its employees by almost a fifth. Coinbase also completed the popular affiliate program in July, according to Business Insider.
“Our target price [COIN] is about $ 52 [in 2022]”said Rumak Research, a group of financial analysts, in its recent Coinbase assessment.
The stock price is close to $ 160, according to Rumak Research, given the current average market risk premium of 5.6% in the United States.
Related: Coinbase to shut down Coinbase Pro to merge business services
On a similar note, DA Davidson analyst Christopher Brendler noted that Coinbase would survive the cryptocurrency market despite its “financial situation”, including $ 3.4 billion in long-term debt. Nevertheless, the company still sits at 6.1 billion dollars.
“The fact that they need to be reduced a bit may not be the best news, but in the end I know they will not be in a situation where they are struggling to survive,” Brendler told Forbes. adds:
“They have been through this before and I am confident they will be able to get through it again.”
The views and opinions expressed herein are those of the authors only and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading business involves risk, you should do your own research when making a decision.
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