Goldman Sachs has made an ambitious price call on Coinbase stock, setting a price target of $306 per share for the crypto exchange’s stock.
Coinbase listed at $226 but saw its price nosedive after the cryptocurrency market saw a huge selloff last week. It had earlier hit a high of $420 after its listing drew a lot of public attention.
Goldman Sachs sees a bright future for the exchange’s stock, as Coinbase has a strong consumer base and holds slightly more than 10% of the total market share of the crypto exchange business. Coinbase has also begun adding products that appeal to the institutional base, as this is where the growth of the crypto market lies.
Coinbase closed the day at 0.42% higher, pulling up from a bearish gap down.
Technical Outlook for Coinbase
The stock needs to find support somewhere around 220.00 to get some propulsion to the upside. This move would need to break the 237.02 resistance (50% Fibonacci extension from the 14 April swing high to the 6 May swing low). This move would allow the bulls to aim for 254.10 and potentially 282.47. An extension of the corrective wave following the 1-2-3-4-5 wave pattern takes price beyond the 300.00 psychological resistance. This move would allow the 306.97 target set by Goldman Sachs (27 April and 12 May highs) to become a reality.
On the other hand, any of these resistance levels could serve as rally points where renewed selling could occur, with price ultimately having to test the 19 May low at 208.00 to provide a chance for a further decline.