Coinbase Share Price Rises After Earnings Beat, But Headwinds Exist

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Written By: Eno Ikenna Eteng
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    Summary:
  • The Coinbase share price action remains on the bullish side after the company reported better-than-expected earnings in Q2 2021.

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.

Coinbase Share Price Outlook

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.

Coinbase Share Price: Daily Chart

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Written By: Eno Ikenna Eteng

Eno's work as a technical analyst and author since 2009 is well recognized in the industry and on several freelance platforms. He is also a member of the prestigious UK Society of Technical Analysts and a top-ranked participant in the Basic Investment Banking and Asset Management simulations with Amplify Trading.

Published by
Written By: Eno Ikenna Eteng