Coinbase Stock Jumps as Crypto Prices Rebound: Will the Gains Continue Ahead of Earnings?

Coinbase stock rose more than 12% on Tuesday, extending its recovery from the June 26 low near $141. The shares reached approximately $178 as Bitcoin and several major altcoins advanced. Investors are now assessing whether the rebound can continue before Coinbase reports second-quarter results on July 30.

Coinbase Stock Jumps as Crypto Rally Continues

COIN and other top companies in the crypto industry are doing relatively well as Bitcoin and other altcoins jumped. Bitcoin price jumped to $66,500, while Ethereum is approaching the important resistance level of $2,000.

The market capitalization of all coins jumped by over 2% in the last 24 hours, moving to $2.26 trillion. According to CoinMarketCap, the volume in the industry jumped by 20% to $73 billion.

CoinMarketCap’s Crypto Fear and Greed Index rose to 40, placing market sentiment in its neutral range after an earlier reading of 17. In most cases, Bitcoin and other coins normally does well when this gauge is in an uptrend.

CoinMarketCap’s Altcoin Season Index rose to 53, indicating improving altcoin performance but remaining below the 75 threshold used to define an altcoin season.

These developments are usually bullish for Coinbase because they improve sentiment in the industry. Most importantly, they lead to more transaction volume, which leads to more revenue for the company.

Strategy has recently prioritized raising cash through equity issuance, although its Bitcoin acquisition activity should be verified against the company’s latest disclosure.

Potential Rotation Back to Crypto

Crypto assets recovered while several semiconductor and memory stocks retreated from recent highs. The concurrent moves may indicate shifting risk appetite, but the available data does not establish that investors directly rotated capital from semiconductor shares into cryptocurrencies.

Bitcoin and Ethereum ETFs have continued to accumulate assets this month, a sign that Wall Street investors are buying the dip. Spot BTC ETFs have added over $427 million in assets. Spot Ethereum ETFs have added over $271 million.

Rising ETF assets may support Coinbase custody-related revenue where its contracts link fees to assets under custody. However, the impact depends on individual custody agreements and does not necessarily move in line with daily ETF inflows.

Looking ahead, the next key catalyst for the COIN stock price is its earnings, which will come out on July 30. Analysts believe that the company’s business experienced a major downturn in the second quarter as the crypto winter gained steam.

The average estimate among analysts is that its revenue dropped by 11.4% in the second quarter to $1.33 billion. Also, the earnings-per-share is expected to move from $5.4 last year to $0.06 in the last quarter. Notably, Coinbase has missed the analysts’ estimates in the last two consecutive quarters.

The biggest risk that Coinbase faces is that the ongoing crypto market rally may be brief. Recent Bitcoin and altcoin rallies have turned out to be brief.

COIN Stock Price Technical Analysis

Technicals point to a potential retreat in the coming weeks. That’s because it is yet to move above the descending trendline that links the highest swings since December last year.

The stock also remains below the 100-day and 200-day moving averages, a sign that bears remain in control for now. Also, it has formed an inverted cup-and-handle pattern, a common bearish continuation sign.

Therefore, the most likely COIN stock price forecast is bearish, with the next important target to watch being at $141. If this happens, the next important target to watch will be at $125.

This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency prices, ETF flows, earnings forecasts and technical indicators do not guarantee future stock performance. Investors should conduct their own research before making investment decisions.