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Coinbase Global, Inc. Stock Shows Strong Growth Potential

StockInvest.us, 2 months ago

Coinbase Technical Analysis of Coinbase Global, Inc. (COIN)

Coinbase Global Inc. has demonstrated robust growth in 2023, with a dramatic increase of 390% in its stock price, positioning it as one of the significant gainers of the year. As of the last close on December 29, 2023, COIN closed at $173.92, a 6.68% drop from the previous trading day. Despite this pullback, the stock exhibited a high volatility, with an Average True Range (ATR) of $5.46 and bouncing between a low of $171 and a high of $187.25.

The technical indicators paint a mixed picture for COIN. With a Relative Strength Index (RSI) of 66, it is approaching overbought territory, which could signal a potential pullback or consolidation phase. However, the Moving Average Convergence Divergence (MACD) sits at 18.01, suggesting bullish momentum in the medium-term trend.

The stock price is well above both the 50-day moving average ($115.88) and the 200-day moving average ($83.07), indicating a solid uptrend over the past months. From a technical vantage point, if COIN manages to hold above its support level at $161.86, it could signal a continuation of the bullish trend. However, investors should watch for resistance near $175.48, which could prove to be a challenging threshold to surpass in the short term.

Fundamental Analysis of Coinbase Global, Inc. (COIN)

From a fundamental perspective, COIN's market cap of approximately $41.59 billion reflects investor confidence in the company's positioning within the cryptocurrency market. Nonetheless, the company is currently unprofitable, as echoed by a negative earnings per share (EPS) of $-3.21 and a negative Price-to-Earnings (PE) ratio of -54.18, suggesting that investors are anticipating future profitability through growth and sector expansion.

Upcoming events such as the earnings announcement on February 19, 2024, will further illuminate the company's financial health and could significantly influence the stock's direction based on the reported outcomes relative to market expectations.

Coinbase Analysts' consensus points to a "Buy" stance, with 24 analysts recommending a buy and only 2 suggesting a sell. The target consensus price is set at $181.73, which is slightly above the recent closing price, indicating moderate upside potential based on current analyst projections.

Relevant news highlights the performance of single-stock ETFs related to COIN and the stock's exceptional performance in 2023, suggesting a positive sentiment surrounding the stock and the potential continuance of this trend in the New Year.

Stock Performance Prediction

For the next trading day on January 02, 2024, and the upcoming week, taking into account its intrinsic volatility and the current bullish market sentiment, COIN might experience fluctuations around its current level but could lean towards the bullish side if market conditions remain favorable for the cryptocurrency sector.

Optimism around Bitcoin and broader cryptocurrency price movements tend to have a significant impact on COIN, as evidenced by recent news articles covering Bitcoin's potential rally in 2024 and COIN's correlation with this trend. Future gains for Bitcoin and the cryptocurrency market could provide further uplift for COIN, coupling with the positive momentum built up over 2023.

Overall Evaluation: Buy

After analyzing both technical and fundamental factors, an overall evaluation of Coinbase Global, Inc. (COIN) leans towards a "Buy." The growing interest in cryptocurrency, COIN's significant stock performance in the past year, and the technical indicators that support an ongoing bullish trend justify a favorable outlook.

Investors should remain cautious since volatility is inherent in crypto-related stocks, and any adverse news relating to the sector could impact COIN's trajectory. However, given the analyst consensus, improving technicals, and the momentum carried from its recent performance, COIN appears to be an attractive investment option going forward. Still, it is recommended that investors closely monitor the stock, especially as it nears its earnings announcement in February, which could act as a catalyst for notable price movements.

Check full Coinbase forecast and analysis here.