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Blockchain Stocks Set to Rise
Blockchain leader Coinbase Global (COIN) has struggled this quarter, losing 10% from the start of the third quarter to the start of the month. The stock is also a long way from its March 25 more than two-year high of $283.48. However, COIN’s recent pullback may be short-lived as the stock approaches a historically bullish trend line.
According to data from Senior Quantitative Rocky White, Coinbase stock is within one standard deviation of its 80-day moving average, after spending an extended period of time above it. The stock has seen six similar signals in the last three years, after which it rose a month later in 67% of cases, with an average gain of 23%. Last seen up 1.2% at $238.78, a move of similar magnitude from the stock’s current position would take it to around $293.70 – levels not seen since December 2021.
Coinbase stock daily chart with its 80-day moving average
Refinitiv Eikon
Despite a 308% year-over-year lead and a 36.4% year-to-date gain, analysts are still bearish on COIN. Of the 21 covering brokers, 11 recommend a “hold” and two rate the stock a “strong sell.” An easing of this pessimism could help push Coinbase shares higher.
Additionally, Coinbase Global’s Schaeffer’s Volatility Scorecard (SVS) stands at 71 out of 100, indicating that the stock has exceeded options traders’ volatility expectations over the past 12 months – a boon for premium buyers.