The Coinbase share price opened higher this Wednesday, but some of the early gains were shed after the company reported better-than-expected Q2 2021 results. Coinbase earnings came in at an adjusted $3.45 per share, which trumped analysts’ estimates of $2.33 per share as per data from Refinitiv.
Revenues also beat expectations of $1.88 billion, rising from $186.4 million to $2.23 billion. The company also announced that transacting users per month climbed 44% from Q1, standing at 8.8million. Verified users grew to 68 million users, and trading volumes grew 38%.
The company expects a drop in trading volumes in the 3rd quarter after US SEC Chair Gary Gensler approached the US Congress for more sweeping powers to oversee cryptocurrency platforms. The plan to use taxes on crypto transactions to partly fund the new infrastructure bill is also a headwind to the earnings growth in the 3rd quarter.
Coinbase share price remains higher by 5.63% as of writing.
The intraday rejection from the day’s highs tested 282.47, but the new support stayed firm. Bulls would now look to build on this bounce by targeting the 15 April low at 309.55. Above this level, 319.22 serves as new resistance.
On the flip side, a breakdown of 282.47 allows bears to aim for a run towards 270.79. 250.92 and 239.29 are additional targets to the south.
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