Is Now The Right Time To Buy Coinbase Shares?


By Anna Peel. Originally published at ValueWalk.

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Coinbase Global Inc (NASDAQ:COIN) shares are down by nearly 90% from last year’s peak.

The slide in the share price of the leading crypto platform accelerated after the easings contained a warning of the risk to customers’ crypto holidays in the (unlikely) event of the company’s bankruptcy.

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There was talk of users moving their crypto assets away from their Coinbase accounts to hardware wallets, or physical storage devices as a result. “Because custodially held crypto assets may be considered to be the property of a bankruptcy estate, in the event of a bankruptcy, the crypto assets we hold in custody on behalf of our customers could be subject to bankruptcy proceedings and such customers could be treated as our general unsecured creditors,” the company said.

So, should you make the jump?

Coinbase Share Price Remains In A Downtrend

Alex Rudolph, Market Analyst at IG advises:

“With an attractive P/E ratio of just under six, compared to 150 a year ago, the global crypto economy still at its infancy stage and Coinbase officially the biggest non-fungible token (NFT) platform, some investors such as ARK Invest’s Cathie Wood, bought more stock.

Disclosures from her firm show Wood bought almost $45 million in Coinbase shares last week alone. From a purely technical perspective, however, the Coinbase share price remains in a clearly defined downtrend, even if it staged a relief-rally towards the end of last week in line with other global equity markets as risk-off sentiment briefly waned.

It is possible, though unlikely, that last week’s all-time low on the Coinbase IG Daily Financial Bet (DFB) at 4,086 marked the share’s low since five Elliott waves to the downside can be made out from its late March high. Even if this were to be the case, only a corrective three Elliott Wave A, B and C advance is likely to unfold before another impulsive down leg is being seen.

This is to say that as long as the share price stays below the early May high at 13,720 on the IG Daily Financial Bet (DFB) and the January-to-March lows at 15,014 to 16,287 cap, downside pressure retains the upper hand.”

About IG

Established in 1974, IG is a global leader providing trading and investment opportunities to people worldwide. IG analysts report every day on the latest changes in the financial markets, providing timely fundamental, economic, and technical analysis and a close examination of promising chart formations with live currency quotes. IG also provides analysis of market moves, explaining economic, political, and technical factors driving the market.

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