Coinbase Global Inc (NASDAQ: COIN) is a financial technology company that provides end-to-end financial infrastructure and technology. It is primarily focused in building cryptoeconomy, a transparent financial system enabled by crypto that leverages crypto assets, a digital asset that is built using blockchain technology.

Key Highlights

• Coinbase shares are down ~46.5% in last 3-months, ~35% in past one month and ~23% in a week over period, implies a strong bearish trend in the stock.
• Coinbase shares are trading well below its crucial long-term as well as short-term support levels of 20-day, 30-day, 50-day and 100-day SMAs, a bearish trend.
• 14-day RSI hovering in an oversold zone at 21.77, a potential pullback possible in next few trading sessions.
• Hovering uncertainties over crypto market is another pain point for the company.
• The company reported decent topline growth in quarter ended September 30, 2021, with quarterly revenue stood at 1311.91 million vs USD 315.4 million reported a year before. However, on sequential quarter basis the company revenue declined from 2,228.0 million in quarter ended June 2021. This implies greater volatility in the company’s financials.

Stock recommendation

Coinbase shares are hovering in a steep bearish trend, with stock recorded significant decline over the past 3-month and 1-month. Moreover, its shares are trading below all its short-term as well as long-term support levels. However, the company’s financial performance in the quarter just gone by was quite decent on a YoY basis, but still its shares have beaten down badly on the Wallstreet. Also, hovering uncertainties around the crypto market needs to be evaluated carefully. Hence, we recommend a “Watch” rating at the current market price of USD 173.20 as on January 28, 2022, at 02:36 PM ET.

Daily price chart (as on January 28^th, 2022). Source: REFINITIV, Analysis by Kalkine Group

* The reference data in this report has been partly sourced from REFINITIV.

* All forecasted figures and industry information have been taken from REFINITIV.

* Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.