Coinbase stock price has pulled back in the past few weeks as the sentiment in the crypto industry changed. COIN shares crashed from the year-to-date high of $282 to a low of $218 as the focus now shifts to the upcoming earnings.
Coinbase earnings preview
Hundreds of companies in the S&P 500 index will publish their financial results this week as the earnings season gets into high gear. Some of the most notable earnings are from companies like Amazon, Eli Lilly, Coca-Cola, Mastercard, Apple, and Pfizer.
Coinbase will also publish its financial results this week. These figures will be important for three main reasons. First, they will provide more information about the company’s custody business, which has boomed recently.
The company now holds Bitcoin tokens worth over $50 billion for firms like Grayscale, Blackrock, Ark Invest, and others. It takes a small fee for each of the coins it holds. As such, these results will provide more information about the company’s growth in the sector.
Second, Coinbase will provide more information about the company’s Base Blockchain, which is slowly growing its market share. The network has a total value locked (TVL) of over $1.5 billion, making it the 6th biggest blockchain in the world.
Its TVL has defied gravity, rising by over 30% in the past 30 days while the number of holders has soared to over 365k. The biggest DeFi players in the Base Blockchain are Aerodrome, Uniswap, Extra Finance, and Beefy.
Finally, these results will provide the company’s revenue and profitability growth as Bitcoin and other assets surged. Analysts expect that the company’s revenue surged to over $1.3 billion in Q1, up from $772 million in the same period in 2023. Coinbase made $953 million in Q4.
The key driver for the Coinbase stock price will be the company’s guidance now that the price of Bitcoin and other coins have all crashed hard.
Coinbase stock price forecast
The daily chart shows that the COIN share price peaked at $282.35 in March, the extreme overshoot level of the Murrey Math Lines tool. It has now crashed to the strong pivot reverse point. Also, the stock is consolidating at the 50-day Exponential Moving Average (EMA).
Meanwhile, the MACD indicator has moved below the neutral point. The histograms of this indicator have also dropped below that level. Coinbase has moved inside the Ichimoku cloud indicator.
Therefore, the outlook for the Coinbase share price is bearish, with the next point to watch will be $188.54, its highest swing in December last year. This price is about 13% below the current level.
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