Coinbase (COIN) dumps to record low alongside Bitcoin while experts give a BUY verdict

Key Takeaways:

  • Coinbase stock (COIN) drops to historic low amid crypto bloodbath
  • The tech stock remains dependent on Bitcoin price action and could drop further
  • BTC flashes conflicting technicals on the daily chart
image from medium.com
image from medium.com

YEREVAN (CoinChapter.com) – Coinbase, the largest crypto exchange in the U.S., saw its stock, COIN, drop 85% to the historic low of $53.7 per share on May 12, from its November high of $368. Additionally, Bitcoin’s (BTC) bearish price action filtered down to crypto-based equities, adding to the COIN’s downside prospects.

Coinbase stock is in trouble, but experts offer a silver lining

The said dependency can be easily spotted on the charts, as COIN and BTC have mostly traded in unison since Coinbase became a publicly-traded company in Apr. 2021.

Coinbase stock (COIN) trading in unison with Bitcoin. Source: TradingView.com
Coinbase stock (COIN) is trading in unison with Bitcoin. Source: TradingView.com

Also, Coinbase stock price might recover, experts agree. They give COIN a BUY rating in the long-term despite the 72% drop quarter-to-date. Furthermore, the analysis pinned the prospect price for the next 12 months in a wide range of $50-$600 per share. Thus, the median target stood at $254, constituting a 372% increase from the current price.

Also read: Coinbase stock drops to historic low, but Wall Street sees a 100% upside move in the books.

The current consensus among 28 polled investment analysts is to BUY stock in Coinbase Global Inc. This rating has held steady since May when it was unchanged from a buy rating.

read the analysis.

In detail, 17 analysts out of the 28 involved churned out a BUY verdict, while 6 of them advised traders to HOLD, and 2 preferred the SELL position.

Bitcoin, Coinbase (COIN) dumps to record low alongside Bitcoin while experts give a BUY verdict
Coinbase Stock analysis. Source: moneyCNN. com

Also read: Coinbase unveils NFT marketplace to boost customers interaction.

In detail, COIN traded in a wide range of $53 – $187 in the current quarter, which some traders might take as too volatile to find a good entry spot.

Bitcoin could take COIN further down?

Meanwhile, Bitcoin’s price dropped more than 25% month-to-date, clocking in at just over $27,600 on May 12, less than half its Nov. 2021 peak. Moreover, the plunge came in near lockstep with a broader collapse of tech stocks as investors grappled with higher interest rates and the war in Ukraine.

The flagship crypto could take COIN further down should the drawback persist. However, the daily chart suggests BTC could have bottomed out, and Bitcoin bulls might pick up the pace. Notably, the “Mayer Multiple” (MM) indicator hit 0.64 on May 12, which backs the bullish stance.

Also read: Bitcoin week ahead Ep21: Focus shifts on inflation data as BTC eyes $30K next.

In detail, MM is utilized to determine the best entry points into the market and the potential exit points. In other words, it is a gauge of when to buy and when to sell. When the indicator stands between 0 and 1, bulls can expect a pickup in the works.

Moreover, the relative strength index (RSI) dropped below the ‘oversold’ barrier, which typically pumps up the hopes for an upside correction.

Bitcoin (BTC) daily chart featuring an oversold RSI. Source: TradingView.com
Bitcoin (BTC) daily chart features an oversold RSI. Source: TradingView.com

BTC sell-off could continue

In addition to the uptrend hints, the daily chart pointed at several bearish indicators. For example, the amplified red trading volumes point to a strong sell-off wave that could trigger further panic sales in the upcoming sessions. Additionally, the trend-based oscillator MACD waved a bearish continuation flag as well.

Also read: Bitcoin (BTC) loses support and falls below $36K; where are the whales?

Coinbase’s future stock price highly depends on Bitcoin and how traders perceive tech stocks amid the broader market. Thus, it is unclear if COIN will follow the broad prediction trajectory for the next 12 months or if the turbulent market conditions will overpower both BTC and COIN in the short term.

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Bitcoin, Coinbase (COIN) dumps to record low alongside Bitcoin while experts give a BUY verdict

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