New Price Targets for Coinbase, Robinhood as Investors Flock to Crypto
Stocks, commodities and crypto are off to a hot start in 2025, here’s how investors can profit.
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At least so far, 2025 has been the year of the speculator. Stocks, gold and crypto have come to life. Speculative assets in general are having a solid run. For example:
- Since making major lows on April 7, the S&P 500 has gained 21.5%, while the Nasdaq Composite is up 27.8%
- Over that same period, Bitcoin has gained about 40%, while Ethereum has nearly doubled, gaining 89%
- Despite a recent pullback, gold has gained 22% year to date
This is great news for brokers, especially those that serve retail traders. Two brokers in particular are taking off as retail investors attempt to cash in on the excitement.
1. Coinbase Global (COIN)
Coinbase Global COIN exploded for a 24% gain on Tuesday. The cryptocurrency platform will be added to the S&P 500 on May 19, replacing Discover Financial Services DFS. Tuesday’s move was exacerbated by short covering, as ETFs and index funds that mirror the S&P 500 will now be forced to buy Coinbase.
After that strong move, does Coinbase have the potential to move higher? According to the chart, the answer is yes.
On Tuesday, Coinbase broke out of an inverted head-and-shoulders pattern (shaded yellow) on heavy volume (red arrow). Coinbase also vaulted above its 200-day moving average (red line), closing above that key indicator for the first time since late February.
The bullish pattern suggests a rally to the $265 area. However, Coinbase won’t encounter heavy resistance until it reaches the $300 area (black dotted line), which proved difficult to surmount in January of this year.
This analysis gives Coinbase Global a new target price of $300.
2. Robinhood Markets (HOOD)
Shares of Robinhood Markets HOOD also shot higher on Tuesday, gaining nearly 9%. The popular Menlo Park, California-based retail broker announced it would acquire WonderFi Technologies WONDF, a Canadian crypto firm.
Robinhood has formed a large cup pattern (shaded yellow). It remains to be seen whether a handle will be attached to that cup.
Despite trading beneath its 200-day moving average on April 7 (black arrow), Robinhood hasn’t closed below that key indicator since late 2023. Tuesday’s move places Robinhood less than 5% away from a 52-week high, set in February (green arrow).
Based on the chart’s pattern and momentum, Robinhood should be able to reach its all-time high of $85, set in August of 2021.
We're setting that figure as Robinhood's new target price.
At the time of publication, Ponsi was long COIN and HOOD.
