Coinbase Roars Back to IPO Levels – Is COIN Primed for a New Bull Run?
Coinbase just clawed its way back to its listing day valuation—no small feat after crypto's brutal winter. The question now: can it hold the line?
The comeback kid (for now)
COIN's resurgence mirrors crypto's broader rehabilitation tour—complete with skeptical institutional investors slowly dipping toes back in. The stock's rebound smells like renewed retail FOMO meets algorithmic trading bots chasing momentum.
What's priced in?
With Bitcoin ETF flows stabilizing and regulators still playing whack-a-mole with the industry, Coinbase's fate hangs on whether Wall Street believes this is a dead cat bounce or the real deal. Their custody business prints money until it doesn't—just ask the 2022 bagholders.
The cynical take
Nothing rallies like a good short squeeze—especially when half the finance bros still can't explain how cold storage works. Welcome to the casino.
Understand inverse H&S
An inverse head-and-shoulders pattern comprises three troughs, with the middle one being the deepest, marking peak bearishness, and the other two relatively shallower and roughly equidistant in magnitude.
The shallower right shoulder, a sign of buyers looking to reassert themselves, is where volumes tend to pick up. Still, the bullish trend change is confirmed only after prices MOVE above the neckline, a line connecting recoveries between the troughs. Trading volume typically drop as the pattern unfolds and rise as it nears completion.
Chart analysts typically add the gap between the neckline and the low point of the pattern to the breakout point to calculate the possible upside in what's known as the "measured move" method of gauging potential rallies.
COIN's breakout
COIN recently topped the neckline resistance and has established a base above the same since then. The measured move method suggest a potential rally to $660.
Note how trading volumes remain depressed as the deepest tough, the head, was being formed through 2022-23 and picked up in April as the right shoulder neared completion.
The bullish technical development is consistent with the constructive outlook shared by most fundamental analysts. Recently, Oppenheimer raised its projection for COIN to $395 from $293, maintaining an "outperform" rating on the shares.
