COIN Stock Price Analysis: Can Stablecoin Expansion Bolster Coinbase Q2 Earnings

Highlights

The formation of a triangle pattern hints the Coinbase stock witnessed a temporary pullback in its recuperate bullish momentum.
The increased stablecoins transaction and custodial fees through crypto ETFs should positively impact Coinbase’s earnings in Q2.
The midline of the Bollinger Band indicator should provide COIN price with suitable pullback support amid the current rally.

Since mid-July, Major stock indexes such as the S&P 500 and Nasdaq Composite projected a fresh correction trend and fell to last Friday’s low of $5497 and $17691 respectively. Defying the bearish pullback COIN Stock price analysis showed a notable growth likely attributed to the recovery trend in the crypto market.

As the business for Coinbase is expected to grow from the upcoming Ethereum ETF and Stablecoin momentum, several analysts hinted at a positive Quarter 2 earning report.

COIN Stock Price Analysis As COIN Targets $370

BATS:COIN Chart — Coinbase Stock Price Analysis| Tradingview

Over the past four months, the COIN stock price analysis showcased a sideways action resonating within two converging trendlines. These trendlines offering stock price dynamic resistance and support revealed the formation of a symmetrical triangle pattern.

On July 12th, the COIN stock price rebounded from a lower trendline of support coinciding with renewed recovery in the crypto market. The bullish turnaround has boasted the asset 23.5% within two weeks to trade at $265.15, while the market cap jumped to $58.91 Billion.

Last Friday, the rising COIN Stock price gave a bullish breakout from triangle resistance, signaling the end-of-consolidation trend.

Amid positive price behavior, this leading cryptocurrency exchange marks two recent developments to solidify its position in the cryptocurrency market.

A recent tweet from the CEO of Professional Capital Management, Anthony Pompliano, highlights that stablecoin transaction volume reached $2.8 trillion in Q2, an all-time high. The market’s increasing reliance on stablecoins indicates a demand for digital dollars that directly benefits Coinbase in several ways such as Increased transaction fees, growth in Interest Income, and Enhanced stake opportunities.

There was $2.8 trillion of stablecoin transaction volume in Q2, which is an all-time high.

The market is telling us it wants a digital dollar run on modern rails.

(h/t @alyssachoo_ & @BitwiseInvest) pic.twitter.com/ssdJ9Glscy

— Anthony Pompliano 🌪 (@APompliano) July 20, 2024

Moreover, Coinbase’s tweet highlights its role as a trusted partner and custodian for 10 out of 11 spot BTC ETFs and 8 out of 9 newly approved ETH ETFs. Acting as a custodian for these ETFs allows Coinbase to earn custodial fees.

Coinbase is proud to be a trusted partner and custodian powering 10 of 11 spot BTC ETFs and 8 of the 9 newly approved ETH ETFs.

— Coinbase 🛡️ (@coinbase) July 22, 2024

The combination of record-breaking stablecoin transaction volumes and Coinbase’s partnerships in the ETF space positions the company for robust financial performance. The development will bolster the revenue segment of the 2024 Q2 Earning reports, set to be released on August 1, 2024.

If the triangle pattern holds, the COIN stock price analysis can extend the near-term target to $343, followed by $371.

Technical Indicator

BB Indicator: The COIN price challenging the upper boundary of the Bollinger Band indicator highlights the buyers dominating the current market movement.
ADX: The Average Directional Index slope rally at 16% hints the recovery trend is young and holds sufficient room for growth.

Frequently Asked Questions (FAQs)

1. What are custodial fees in the context of ETFs?

Custodial fees are charges levied by a custodian for holding and managing assets, such as ETFs (Exchange-Traded Funds).

2. What is stablecoin transaction volume?

Stablecoin transaction volume refers to the total value of transactions made using stablecoins, which are cryptocurrencies pegged to a stable asset like the US dollar.

3. Will Coinbase Stock price surpass $300?

The recent breakout from the triangle pattern, combined with the potential for positive Q2 results, suggests that COIN stock holds better opportunity to chase $300.

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Sahil Mahadik

Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading

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