Coinbase (COIN) shows signs of a potential price bottom and could be heading for the moving average near $90.
That would imply an upside of around 100% for Coinbase investors and traders.
COIN – Weekly Chart
The price of Coinbase trades at $43.79, is ahead of May, and remains low around the same level. A solid weekly close can boost the cost of the token and see a further rally.
Wednesday saw another hearing into the collapse of the rival FTX exchange, and auditors said that they had recovered around $5bn in assets at the failed lender. That is a significant improvement on the $1 billion expected in December. That could boost the crypto market with hopes that the creditors of FTX can receive some of their investment back.
Coinbase recently announced a second wave of job cuts as the exchange seeks to weather the storm against what the CEO, Brian Armstrong, called “unscrupulous actors.”
“We are encouraged by this morning’s news, as it shows the company is taking financial discipline seriously in a very challenging crypto/macro environment,” analysts from Barclays said of the move to trim costs.
According to data from Bloomberg, Ark Asset Management bought another $1.45M worth of shares last week, making the company one of Coinbase’s most significant shareholders, with a 4.3% stake in the company.
Bank of America strategists had a different view. It downgraded Coinbase to underperform with the stock’s price target lowered from $50 to $35, citing a challenging year ahead for the broader digital asset industry.
That may be the case, but traders could catch a swing rally higher in COIN and grab some early-year gains.
