Coinbase Hits All-Time High with Strong Bullish Signs: But What Do Analysts Think?

Coinbase (Nasdaq: COIN) shares are seeing a strong rally, with the price reaching its highest level since the April 2021 public debut. The stock rose about 4 per cent in a single day, closing at over $369. It had listed on public exchanges at $381 per share, and briefly touched $382 during the day.

The crypto exchange stock also added another 1.6 per cent in after-hours trading.

COIN became the best-performing S&P 500 stock on Tuesday after a 12.1 per cent gain. The stock was added to the benchmark index last month, marking the first crypto firm included under the financial services category.

The shares have risen about 22 per cent in the last five trading sessions and nearly 39 per cent over the past 30 days. The stock has bounced back from a low of around $33 per share in January 2023 to its current level.

What’s Behind the Rally?

Interestingly, no specific event within the company appears to be driving Coinbase’s recent surge. However, broader sentiment around the crypto sector could be playing a role.

Parts of the excitement may have come from the recent strong IPO of Circle. The stablecoin issuer went public with a $6.9 billion valuation, revised down from $7.2 billion. In less than a month, it reached a market value of nearly $48 billion. However, Circle’s stock has recently dropped sharply, falling from a peak of $298 to close at $213 yesterday (Thursday).

Another factor that may have pushed up Coinbase’s stock is the expected progress on stablecoin rules in the United States. Last week, the US Senate passed the “Guiding and Establishing National Innovation for US Stablecoins” or GENIUS Act.

The bill now awaits a vote in the House of Representatives, where further changes may be suggested before any decision is made.

Also, Coinbase’s recent inclusion in the S&P 500 index has helped build investor interest in the stock.

Read more: Coinbase Seeks Approval to Use USDC as Collateral in Regulated Futures Markets

Analysts Are Split

A rising stock is usually welcome news for investors. But it raises a question: is this growth justified?

The share price has already passed the average analyst targets. On MarketBeat, the average target was $291, with some estimates going up to $510. On TipRanks, the average was $287.

Institutions are broadly conservative on the stock, with no active sell ratings, while buy-hold are split between 13 and 10.

Analysts' calls on COIN in the past six weeks:

“[COIN is] going vertical now,” said Real Vision CEO Raoul Pal on X (formerly Twitter). “Next step, crypto. The liquidity spigot is wide, wide open.”

Still, some analysts are unsure if the sharp rise can continue. “Weekly view on $COIN looks very bullish, even if it is due for a pullback,” said investment adviser Andy Heilman. He added that the stock has the potential to reach “possible four-digit prices” based on technical signs.

Crypto analysts are also mixed in their chart reviews. According to a reading by analyst Cantonese Cat, the indicators suggest COIN “just wants to keep going up for now.” But another analyst, Chad, looking at the same chart, said the stock “might be ripe for a cooldown soon.”