We wrote about Coinbase stock at the beginning of last month, and thought the price would go higher. The next day, Bitcoin tumbled and the Coinbase stock price started to slide. With Bitcoin making an impressive recovery in recent weeks, the Coinbase chart looks set for a breakout in the near future.

What has happened since we last wrote?

The day after the article came out, BTC fell 18%. Coinbase fell 4.8% and continued to fall a total of 19%. Since that low, Coinbase has recovered 17%, currently up 5.7% on the day. Bitcoin received news about restrictions in China, which is nothing new, but the US then came out and said they would not be banning the crypto. Although Bitcoin is the largest by market cap, it has made some of the best gains since crypto took a turn upwards, outdoing coins such as Ethereum and Cardano.

The chart looks great

The Coinbase stock has created a wedge on the daily chart. Strong daily movement has seen the price bounce off the bottom support and gain over $35 per share. A breakout of this upper line would see a lot of volume come into the stock, driving the price higher, possibly to $300 in the next weeks.

Chart provided by TradingView

What does Coinbase have above the others?

Coinbase has, in my opinion, the most user friendly interface. It reminds me of using PayPal. It’s very straightforward. This is the key factor in its popularity, especially as many newcomers to crypto may get lost on other sites.

Coinbase is always adding coins to its platform. It currently has more than 100 assets available to trade. Shiba Inu is a recent addition that has seen a lot of interest. As this grows, more interest will be received from the crypto enthusiasts who love researching and trading small crypto products, which often see volatile price changes.

What are the risks?

The risks are directly related to Bitcoin at this time. If the price takes a turn for the worse, we could see the Coinbase share price fall. But whilst crypto is bullish, Coinbase should keep driving upwards. Earnings are due in November, so there is plenty of time for the price to make gains before it worries about estimates. Estimates could be strong for Coinbase as the volatility in crypto in recent months will have caused more volume, leading to more revenue for the company.

Overview

We will return to share our views nearer the time of earnings and check up on the progress. $300 is a target for me to be reached in the upcoming weeks. I would then add that this target would be very conservative if earnings are strong, I believe we could see $340 by the end of the year.

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