- Coinbase share price has jumped by over 172% from the lowest level in December.
- The company is facing numerous headwinds and tailwinds.
- A golden cross pattern is about to happen on the daily chart.
Coinbase stock price has done well in the past few days. The shares jumped to a high of $86.75, the highest level since August last year. Together with Bitcoin mining companies like Marathon Digital and Riot Platform, COIN is one of the top-performing stocks this year.
Waiting for a BTC breakout
Coinbase share price has done well in an extremely challenging market environment. After falling to a low of $31 in December, the shares have jumped by more than 167% to the current $86.
The stock has mostly jumped because of the remarkable cryptocurrencies comeback. Bitcoin has surged above $30,000 from the year-to-date low of $15,000. Similarly, other coins like Litecoin, Bitcoin Cash, and Cardano have all jumped.
Coinbase is facing major headwinds as the SEC continues cracking down on the company. Its lawsuit alleges that the company provides unregulated securities in its ecosystem. The SEC has also focused on the company’s staking services.
Therefore, if the SEC wins the lawsuit, it means that Coinbase could be forced to delist most of its tokens and pay a huge fine. The company will also be forced to stop offering staking solutins in its platform.
Despite these headwinds, Coinbase stock has several tailwinds that could push the stock higher. First, Bitcoin is on the cusp of a bullish breakout. And some analysts believe that the coin will jump in the coming months. Those at Standard Chartered see the coin soaring to over $100k by 2024.
The other key catalyst is that the company’s custody business could continue thriving if the SEC accepts the recently filed ETFs. While Coinbase has not filed its own ETF proposal, it sits at the center of it all. If it is accepted, the company’s custody services will likely continue booming. Coinbase has been selected by companies like Grayscale and Blackrock to provide these services.
Coinbase stock price forecast
The daily chart shows that the COIN stock price has been in a strong bullish trend in the past few months. This rally gained steam on Tuesay when it managed to move above the important resistance level at $85.15, the highest level on February 2nd and March 22nd.
Coinbase shares have also jumped above the 200-day and 50-day moving averages. The two averages are about to form a golden cross. Therefore, there is a likelihood that the stock will continue rising as buyers target the next key resistance level at $100.
