- Coinbase share price has formed a symmetrical triangle pattern.
- The company is well-positioned as crypto investors move to safety.
Coinbase stock price has moved sideways in the past few weeks as investors focus on the performance of cryptocurrencies. COIN shares were trading at $62.5, where it has been at since February. It has pulled back by more than 28% from the year-to-date high.
Safest crypto exchange?
Coinbase share price has been in a consolidation phase as investors assess the impact of the Silvergate Capital collapse. It is also tracking the ongoing activity in the crypto industry after Bitcoin price pulled back from $25,200 to about $22,000. Ethereum price remains above $1,500 while the total market cap of all cryptocurrencies is stuck around $1 trillion.
In most periods, Coinbase shares tend to track the performance of cryptocurrencies. For example, the stock plunged by more than 60% as cryptocurrencies retreated, shedding over $2 trillion in market capitalization.
Still, there is a major positive on Coinbase, which has emerged as one of the safest crypto exchanges in the world. For one, it is an American company, meaning that it is headquartered in the country and regulated by the Securities and Exchange Commission (SEC). This means that the company always works in higher standards than its international peers like Binance.
Further, Coinbase is the only listed crypto exchange in the US. As such, the management regularly talks with investors in a truthful manner. Lying or making exaggerated claims could lead to charges by the SEC and other regulators. In a recent statement, Coinbase’s CEO said:
“We’ve approached regulation by seeking it out. We’ve run towards regulation and thought out to get licensed in any way that we possibly could. We have a variety of licenses just in the U.S. but across all the jurisdictions.”
Most importantly, Coinbase is audited by Deloitte, one of the big-four auditors in the world. This means that the company’s reports can be trusted. At the same time, the company has been immune from some of the biggest crises, including the collapse of Silvergate Capital, FTX, Voyager Digital, and Celsius among others.
Therefore, Coinbase is best positioned to lead the crypto industry, especially in the institutional side. It has already been selected by 25% of all the biggest asset managers in the world.
Coinbase stock price forecast
The daily chart shows that the COIN share price has been in a tight range. A closer look shows that it has formed a symmetrical triangle pattern that is shown in green. This pattern is about to get to a confluence level. Most importantly, it remains above the 50-day and 100-day exponential moving averages (EMA).
Therefore, the next price action of Coinbase shares will depend on the upcoming US non-farm payrolls data. Because of the moving averages, we can’t rule out a situation where the stock makes a bullish breakout in the coming weeks.
