Coinbase Global, Inc COIN experienced a slight dip in trading on Friday, closely mirroring the retracement of Bitcoin BTC/USD and Ethereum ETH/USD. The volatile crypto market saw Bitcoin and Ethereum retracting 3% and 5.5% respectively heading into the weekend.
Despite the crypto sector’s fluctuations, Coinbase has demonstrated resilience in recent days. On Thursday, the platform soared to a 27-month high of $276.38, outpacing Bitcoin’s retracting trend from the highs of March 13 and March 14 by about 10%.
JMP analyst Devin Ryan, supporting Coinbase’s momentum, reaffirmed a Market Outperform rating and maintained a price target of $300. Ryan commended Coinbase’s growth potential beyond its primary role as a cryptocurrency exchange, highlighting its promising outlook as the market continues to evolve.
On the other hand, Cathie Wood’s Ark Invest opted to sell 199,526 Coinbase shares through various funds despite the platform’s strength. This move coincided with the underperformance of Ark Innovation ETF in the market recently.
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The Coinbase Chart: Coinbase exhibited consolidation on Friday with lower-than-average volume, forming a doji candlestick on the daily chart. The emergence of the doji candlestick hints at a potential local bottom, suggesting a rebound in the stock’s value come Monday.
- Friday’s consolidation, following the 27% surge between Tuesday and Thursday, positioned the stock to potentially form a bullish flag pattern on the daily chart. A breakout from this pattern, supported by increased volume, could drive the stock towards the $318 mark in the future.
- By surpassing a higher high above the recent higher low of $269.39 on March 13, Coinbase invalidated its brief downtrend on Thursday. A continuation of this upward trajectory and a breakout from the bullish flag would confirm a new uptrend with Friday’s low setting a higher low.
- For bullish sentiment to prevail, substantial bullish volume is needed to propel Coinbase above Thursday’s high and validate the bullish flag. Conversely, bearish pressures may intensify if significant bearish volume drops Coinbase below the eight-day exponential moving average, potentially reversing the bullish trend.
- Coinbase faces resistance levels at $263.34 and $276.38, while support lies at $248.49 and $237.01.
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