Coinbase Consolidates Post-Earnings Surge As Cathie Wood Offloads Stock: Will This Bull Flag Play Out?

Coinbase Global, Inc COIN was trading down about 2.7% on Friday but continuing to see decreasing volume on the daily chart, indicating the stock is in a period of consolidation after surging to new highs following its quarterly earning print.

Following Coinbase’s big post-earnings move higher, some traders and investors likely cashed out their positions, anticipating consolidation was needed. On Wednesday, Cathie Wood-led Ark Invest sold 40,683 shares of Coinbase through ARK Innovation ETF ARKK and Ark Fintech Innovation ETF ARKF -a transaction valued at $6.6 million.

Bitcoin and Ethereum have also been consolidating recently but like Coinbase, the cryptos look to be settling into possible bull flag patterns on the daily chart, indicating a larger move to the upside could be on the horizon.

Read Next: Nearly $1 Billion In Bitcoin Withdrawn Leaving Coinbase With Lowest Reserve Since 2015

Trending: Flight Attendant Hasn't Paid Rent For 10 Years, Enjoys 'Generous Benefit Package' And Tax-Free Salary

Bullish traders and investors looking to play the possible upside in Coinbase stock but with a diversified approach may choose to take a position in AXS 2X Innovation ETF TARK. TARK is an actively managed double-leveraged ETF aiming to return 200% of the daily performance of Cathie Wood-led ARK Innovation ETF. Coinbase is the top holding within ARKK, with a 9.77% weighting, followed by Tesla at 7.91%.

For traders bearish on Coinbase, AXS Short Innovation Daily ETF SARK is an actively managed ETF aiming to inversely track the daily performance of ARKK and its basket of holdings.

Want direct analysis? Find me in the BZ Pro lounge! Click here for a free trial.

The Coinbase Chart: Coinbase reached a high of $193.64 on Feb. 16, where the stock topped out and began to consolidate. The run higher between Feb. 7 and Feb. 16, paired with the recent downward consolidation, has settled Coinbase into a possible bull flag pattern on the daily chart.

• The measured move, if Coinbase breaks up from the downward sloping flag on higher-than-average volume, is about 70%, which suggests the stock could be headed toward $273 at some point in the future.
• If Coinbase drops under the eight-day exponential moving average as it continues falling within the flag, the bull flag will be negated and a downtrend will be confirmed. If that happens, Thursday’s high-of-day will serve as a lower high to confirm the new trend.
• Coinbase has resistance above at $177.45 and at $191.48 and support below at $162.20 and at $140.53.
  

Photo by Sean Pollock on Unsplash