When looking at the broader market, as well as both the medium and short term, Cryptocurrency exchange Coinbase Global Inc (NASDAQ: COIN) is in a negative position as it continues on its downward trajectory that started in November of last year.
Dan Dolev, an analyst at Mizuho, recently set a $150 price objective on April 12 for Coinbase with a “Neutral” rating on the stock.
The analyst revised the rating after analysing significant cryptocurrency exchanges, which revealed that Coinbase may be losing market share.
Dolev is concerned about imminent retail price pressure and the long-term viability of Coinbase’s business model as a result of the quick emergence of competitors such as Crypto.com, FTX, and others.
COIN chart analysis
In the last month COIN has a been trading between $146.82 – $206.79 range, which is quite wide. It is currently trading near the lows of this range with prices falling strongly lately, as a result it has been a little bit too volatile to find a good entry and exit point.
In addition the asset is trading well below its 20-50-200 day Simple Moving Averages, typically used by investors as an indication of an downtrend suggesting recent bearish momentum.
In the last three months, 16 Wall Street stock trading experts have given 12-month price predictions for Coinbase. It is projected to reach a median price of $296.53, with a high of $500 and a low of $135.
Notably, the average price target is 101.32% higher than the stock’s current trading price of $147.29.
COIN has seen twelve TipRanks experts reiterate their ‘Buy’ recommendatiCns in the past three months, while two have recommended ‘Hold.’ and anoth two advised ‘Sell.’ Consequently, most analysts think Coinbase is a ‘moderate buy.’
Competition for Coinbase heats up
In the face of increased competition, Coinbase’s EBITDA is projected to continue to be negatively impacted beyond 2022.
Having said that, technology companies on the Nasdaq have taken a beating in recent months, and it is likely that this has had an influence on COIN at some point .
The cryptocurrency market and its flagship digital assets are both a long way from their all-time highs, and it is inevitable that this mood will filter down to crypto-based equities as a result of this.
However, once its operations in India are up and running smoothly, as well as a potential movement in the price of Bitcoin, it is possible that Coinbase may change course.
Coinbase, although selling at $150 per share and at 4.5 times sales, it is overpriced on an earnings basis, trading at over 32 times its forecasted profits for the current year.
The stock, on the other hand, has a lot of upside potential in the long term due to the company’s leading position in the rapidly expanding cryptocurrency market.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.