Coinbase Stock Price Breaks Key Support, But 25% Upside Potential Remains

Summary:
• Coinbase stock price is poised for further upside as long as the crypto market continues to soar. However, multiple factors are also in play.

Coinbase stock price returned to winning ways on Monday, rising by more than 2 percent to close the day’s trading session at $302.40. The recovery comes on the heels of Goldman Sachs’ revision of its price target for the stock. The investment bank maintained a “neutral” rating on the stock but raised the price target substantially to $397 from the previous $183.

The crypto market upsurge is a boon for Coinbase stock price, as the company is primarily a digital assets exchange. With the crypto market capitalization rising to over $3.47 trillion, the transaction volumes have spiked, bringing more revenue to the company.

However, Bitcoin price has met headwinds in its pursuit of the milestone $100k mark, and that could pose a challenge to Coinbase stock price upside. The crypto market bellwether has gained 1.4 percent in the last seven days, a meager achievement in the current market rally.

However, Altcoins have stepped up, with the likes of XRP, XLM and HBAR prices skyrocketing to multi-year highs. That will likely keep investors flocking into exchanges, which will fuel the Coinbase (NASDAQ: COIN) upward momentum.

Furthermore, the incoming Trump administration promises a friendlier regulatory ecosystem for the crypto industry. As the largest cryptocurrency exchange in the United States, Coinbase stands to gain signifiocantly from the expected crypto-friendly policies.

Coinbase stock price prediction

Coinbase stock price has recently broken below the psychological $300 mark and trades below the Volume Weighted Moving Average (VWMA) on the hourly chart.

Pivot: On the hourly chart below, Coinbase stock price pivots at the $295.00. Action will likely head upwards if the buyers keep the price above that mark. Otherwise the downside will prevail.

Resistance: The first barrier is likely to come at $302.50. However, if the buyers extend their control, the price could break above that level and test $310.25.

Support: Anticipate the first support at $290.00. A break below that level will render the upside narrative invalid. Also, the resulting momentum could send the price lower to test the second support at $285.25.