Coinbase stock price forecast ahead of Q2 earnings

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The Coinbase (NASDAQ: COIN) stock price will be in the spotlight this week as the company publishes its quarterly results and as cryptocurrencies rebounds. The stock ended last week at $258, which was 21% above the lowest level in July.

Coinbase earnings

Coinbase is the second-biggest cryptocurrency exchange in the world by volume. The biggest one is Binance, the controversial exchange that has been targeted by regulators like the Financial Conduct Authority (FCA) and Bank of Japan. 

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The company will publish its second-quarter results on Tuesday. These will be difficult results considering that cryptocurrency prices crashed in the quarter. The price of Bitcoin rose to an all-time high and then retreated to below $30,000. At the same time, volume in the industry retreated sharply as investors exited the industry.

Still, analysts expect that the company had a great quarter. Data compiled by SeekingAlpha shows that the median estimate is that the company made a revenue of more than $2.3 billion in the second quarter. This will be about $200 million increase from the first quarter. They also expect that its earnings per share will drop from $3.05 in Q1 to $2.57 in Q2.

Investors will be looking at several things in its quarterly results. First, they will look at the growth of its subscription and services revenue, which made $56 million in Q1. Second, they will look at the company’s user growth now that the prices of most cryptocurrencies retreated in Q2. Most importantly, they will focus on the company’s guidance for the next quarter.

The Coinbase stock price will also react to the recent jump in cryptocurrency prices. During the weekend, the price of Bitcoin surged above $45,000 for the first time in two months. Ethereum also jumped to more than $3,000.. With momentum rising, the Coinbase stock will be at a good place to keep up with the momentum.

Coinbase stock price forecast

Coinbase stock price

The two-hour chart shows that the Coinbase stock price has been in a strong bullish momentum lately. This performance has been because of the recent rebound of Bitcoin prices. The price remains above the 25-day and 50-day moving average. Notably, it has also risen to the important resistance at $260. Therefore, the stock will likely keep rising as bulls target the next key resistance at $300. A drop below $250 will invalidate the bullish thesis.

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