Coinbase Stock Rises 142% in Five Weeks

Over the past five weeks, the stock price of the cryptocurrency exchange Coinbase has risen dramatically.

Overview:

The price of Coinbase stock has surged by 142% in five weeks, from $36.81 on June 13 to $88.88 on July 17. There are a few reasons for this surge, including:

  • The overall growth of the cryptocurrency market. The total market capitalization of cryptocurrencies has increased by over 50% in the past five weeks, from $1.2 trillion to $1.8 trillion. This has led to increased demand for Coinbase's services, as it is one of the largest cryptocurrency exchanges in the world.
  • The launch of new products and services. Coinbase has recently launched several new products and services, such as Coinbase Prime, a platform for institutional investors, and Coinbase Card, a debit card that allows users to spend their cryptocurrency. These new products have been well-received by investors, and have contributed to the stock's surge.
  • Positive analyst sentiment. Several analysts have recently upgraded their ratings on Coinbase's stock, citing the company's strong growth prospects. This has also helped to drive the stock's price higher.

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Over the past five weeks, the stock price of the cryptocurrency exchange Coinbase has risen dramatically. From its all-time low of $46.3 on June 6th to its current price of $114, the stock has shown a remarkable growth of 142%. Investors and analysts alike have been worried about whether or not this remarkable uptrend can be sustained.

Technical analysis suggests that buyers may exert some pressure around the $88.45 mark, which is the 38.2% Fibonacci retracement for Coinbase stock. The 50% Fibonacci retracement level at $80 could provide additional support. These price points may attract buyers and minimize the decline in the event of a downturn.

This is a bullish technical pattern for Coinbase stock as the 50-day EMA is about to cross above the 200-day EMA. This metric suggests increased buying interest, which may hasten the stock's ascent. Investors often see crossovers as an optimistic indicator since they suggest prices could rise more in the future.

According to Brian Bollinger of CoinGape, should a pullback occur, the cryptocurrency would likely find a strong support near the psychological $100 mark. This significant round figure has great psychological importance and may entice purchasers who missed the earlier climb. There may be significant support for a price drop at the $100 mark.

The stock price of Coinbase is at $105 right now, and the daily chart exhibits long-rejection wicks. These wicks indicate selling pressure at higher prices and an upward-sloping supply curve. This selling pressure has the potential to temporarily halt the stock price from growing further.

The Surge and its Causes Analyzed. A Look at Bitcoin, Ethereum, and More

Coinbase's stock price has been significantly affected by the high volume of transactions using Bitcoin and Ethereum. The newest trend has been connected to regulatory measures and market sentiment.

Bollinger added in his commentary that greater regulatory scrutiny or unfavorable public view of digital assets might damper investor enthusiasm and reduce the vigor of the stock's surge.

Jack Denton, a BARRON'S contributor, and industry specialist, noted that while a retreat is likely based on technical indications and likely support levels, a possible golden crossover and psychological support at $100 could raise buying demand.

Read More: Learn the ins and outs of cryptocurrency trading.

The state of the bitcoin sector and regulatory changes, Denton noted, are two factors that could affect how long this rally lasts. As of publication, the share price has recovered to $71.8, $98, and $85.5. Bollinger argues that this shows investors have faith in the stock's ability to drive long-term market growth.

It is important to note that the cryptocurrency market is volatile, and the price of Coinbase's stock could decline in the future. However, the company's long-term prospects are strong, and the recent surge in its stock price could be a sign of things to come.

 


DivineMercy

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Jonah Ekeh 45 w

Good delivery