According to Mizuho, Coinbase's Q3 earnings may be under pressure. The reason being that interest in cryptocurrencies has waned, which is likely reflected in trading volumes on the crypto platform. The analysts at Mizuho suggest volumes from July through September was at $72bn, which is lower than their previous estimate of $88bn. Mizuho maintains an underperform rating with a price target of $27 per share.
The Coinbase (COIN.us) chart is trading flat. Price is on its black 30-week EMA with the EMA moving sideways. Similarly, the weekly RSI is oscillating around 50 (green rectangle), which is neutral in terms of momentum.
One way to monitor COIN.us is via its price relative to its 30-week EMA and the direction of the EMA. E.g., The current price of COIN.us is near $73 per share and is at a significant premium to the Mizuho price target. If Coinbase's price candlesticks dip below the 30-week EMA and the EMA turns down, this will be regarded as a bearish development.
Furthermore, if the weekly RSI moves below 50 and maintains, this will suggest an underlying bearish momentum. The longer it stays there the more pressure on the Coinbase price.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.