By Coinbase stock price has bounced back in the past few weeks, helped by the strong performance of the crypto and stock markets. COIN shares soared to $210, the highest level since March 7, and 48% above the lowest level this month. This article explores whether the stock will keep rising ahead of its earnings.
Why Coinbase stock has rallied
Coinbase, the largest crypto exchange in the United States, has experienced a surge in recent weeks due to the strong performance of cryptocurrency prices.
Bitcoin price soared to the important resistance level of $96,000 for the first time since February. It was a strong comeback for a coin whose price bottomed below $74,000 earlier this month.
Bitcoin’s recovery has led to more gains among other cryptocurrencies. Ethereum price jumped to $1,800, up by 30% from its lowest level this month. Similarly, Solana meme coins surged, with their market cap increasing from $6 billion earlier this month to over $10 billion.
The total market cap of all cryptocurrencies has jumped to over $3 trillion recently. Coinbase stock does well when Bitcoin and other altcoins are in a strong bull run since this usually leads to high volume.
Coinbase stock has surged as part of the broader market recovery. The top indices, such as the Dow Jones, Nasdaq 100, and S&P 500, have all jumped recently after the market’s mood showed significant improvement.
This occurred after Trump expressed openness to a deal between the US and China. Scott Bessent, the Treasury Secretary, has hinted that the two countries will ultimately make a deal as he described the current situation as highly unsustainable. Trump also ruled out firing Jerome Powell, the head of the Federal Reserve.
Coinbase share price has also jumped after the change in leadership at the Securities and Exchange Commission (SEC). Paul Atkins, the new SEC Chair is widely seen as being pro-crypto. The agency recently ended a long-running case against Coinbase, removing one key challenge.
Furthermore, Base, the layer-2 network launched by Coinbase in 2023, is performing well as volume on the network increases. DeFi Llama data shows that the volume handled by the network has jumped sharply in the past few days. It has handled over $46 billion in the last 30 days, making it the fourth-biggest chain after Solana, Ethereum, and BSC Chain.
COIN earnings ahead
The next key catalyst for the Coinbase stock price is the upcoming earnings on May 8. These numbers will provide more information about its performance in the first quarter when Bitcoin and most altcoins retreated.
Wall Street analysts expect the company’s revenue to increase to $2.16 billion, a 32% rise from the same quarter in 2024. The most optimistic analyst sees the figure rising to $2.60 billion.
Analysts also expect the forward revenue guidance for the year to be $7.92 billion, a 20% increase from last year’s $6.5 billion.
The challenge, however, is that predicting Coinbase earnings is difficult because its performance depends on the crypto market.
Read more: Here’s why Solana price will rebound to $400 in 2025
Coinbase stock price analysis
COIN stock chart | Source: TradingView
The daily chart shows that the COIN share price bottomed at $146.65 this month as most cryptocurrencies and stocks were tanking. This was an important level since it was the lowest swing on September 6.
COIN shares have surged above the 25-day and 50-day moving average, a bullish sign in technical analysis.
However, the risk is that it has formed an inverse cup and handle pattern whose lower side is at $146.65. The ongoing rebound is part of the handle section. Therefore, while the recovery is a good thing, there is a risk that it may resume the downtrend in the coming weeks.
If this happens, the next level to watch will be at $146.65, the lower side of the pattern. A break above the resistance at $220 will invalidate the bearish outlook.
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