Coinbase’s stock price has been on a downward trend for the past eight days, mirroring the decline in popular cryptocurrencies like Bitcoin, Ethereum, and Solana. Despite this, an analyst remains optimistic about the potential for the stock to rebound to $295, representing a 40% increase from its current price.
The recent drop in Coinbase’s stock price can be attributed to the overall volatility in the crypto market as well as the company’s latest earnings report. Despite the decrease in net revenue from the previous quarter, Coinbase still managed to surpass its own guidance and analyst estimates. One of the key highlights from the earnings report was the significant increase in transaction revenue and subscription and services revenue, particularly from custodial fees.
Analysts on Wall Street have shown a positive outlook on Coinbase’s stock, with an average price target of $265, which is 25% higher than its current price. Citigroup recently upgraded its rating on the stock from neutral to buy, joining other bullish analysts from Needham, Goldman Sachs, and JMP Securities.
HC Wainwright, however, recently revised its price target for Coinbase from $315 to $295. Despite this adjustment, the analyst still sees a strong 40% potential gain for the stock in the near future. The key drivers for this optimism include potential regulatory clarity in the crypto industry and Coinbase’s successful diversification efforts beyond transaction revenue.
From a technical perspective, Coinbase’s stock faces some challenges as it has fallen below key moving averages and formed a bearish double-top pattern on the daily chart. A break below the neckline of this pattern could signal further downside for the stock.
Overall, while Coinbase’s stock price has experienced some volatility in recent days, there is still optimism among analysts regarding its future potential. With a focus on diversification and regulatory developments in the crypto industry, Coinbase could see a significant rebound in the coming months.