Coinbase Signals 'Big Concern' as Crypto Craze Sweeps Market
Shares of the cryptocurrency exchange could be in for a rude awakening after enjoying momentum.
You're reading 0 of 1 free page.
Register to read more or Unlock Pro — 50% Off Ends Soon
"Crypto crazy" doesn’t even begin to describe the trading action over the past three-plus months. Suddenly, every institution and public company can’t get enough crypto on its balance sheet.
Currently, the focus remains on proxies, with companies concentrating on a single token. It began with Bitcoin, migrated to Solana, then to a few smaller altcoins, until Ethereum took center stage. This is a massive paradigm shift from the end of the first quarter.
Members of my venture group traveled to New York in March to discuss digital treasury opportunities with most of the major banks currently active in the space. At the time, Upexi (UPXI) had recently announced its Solana treasury, marking a debut of the strategy on Wall Street.
While there, the team discussed a multi-token strategy, but banks said their investors would have zero appetite for a diversified approach. When discussion turned to Ethereum, banks showed a little more interest, but still had doubts. None of the banks could rationalize why an Ethereum treasury had not been done, but no one seemed to be actively pursuing it.
Fast-forward a few months, and now we have two companies competing to be the top holders of Ether, putting $1 billion worth on their balance sheet. That’s how fast life changes in the world of crypto.
Ethereum has not replaced Bitcoin as the top name, but it has leapfrogged Solana in a matter of seconds. The question is what token could steal the spotlight next? Hyperliquid has been getting attention, but my eyes are on Binance as a contender.
Next week, I’m going to discuss a few of my favorite names in the space for the next two to three years.
Outside of Strategy MSTR, Coinbase COIN is another name clearly on buyers’ minds. Shares have rallied nearly $200 in the past ten weeks. I’m not ready to get bearish on COIN, but holders should keep a close eye on the current price action.
Shares have been riding the 10-day exponential moving average (EMA) during July. If we close under the 10-day EMA, then I’ll look to the 21-day EMA as the next support level. If you are looking to buy a dip, that’s the level I would target with a stop on a close below $350.
The only big concern I have it on the megaphone pattern. Keep an eye on the longer term full stochastics indicator for a turn below 80. If that happens, exercise short-term caution.
The potential for a pullback is real, but I don’t believe it is time yet to get bearish on crypto or crypto stocks. We may be a little stretched short-term, but I don’t believe the ultimate tops are in.
At the time of publication, Byrne had no positions in any securities mentioned.
