Coinbase Global Inc. (NASDAQ:COIN) shares are soaring Tuesday. Cryptocurrencies are seemingly bouncing back from last week's selloff.
Coinbase Stock Rises as Crypto Rebounds After a Selloff
Coinbase shares are climbing about 8% Tuesday as digital assets recover from a rough stretch. The market had slid Monday on fallout from a hack at the Binance exchange and nerves before the midterm elections.
On Tuesday, Bitcoin (CRYPTO: BTC) gained roughly 1.30% and Ethereum rose around 2.06%. Coinbase's business tends to follow trading activity and coin prices, so that rebound lifted its stock.
Binance Hack Rattled Crypto Exchange Stocks
Part of the earlier pullback traces to the Binance breach, which carried an estimated cost of $6.3 billion at the world's biggest crypto exchange. Binance halted deposits and withdrawals, locked up about $3 billion of affected assets and pledged to cover losses with a user protection fund plus company money. Exchange stocks sank when the news broke, and Coinbase traded about 6% lower before Friday's open.
Coinbase could use the episode to pitch itself as a safer home for customer funds. Its third-quarter report showed a 10.7% slice of trading activity and a fourth straight quarter of share gains. CEO Brian Armstrong argued that trust is a core strength, calling Coinbase the "most trusted" name in the industry. Still, it remains unclear how many customers will actually switch platforms.
Coinbase Stock Technical Read: A Bounce Within a Long Decline
Coinbase trades at $149.13, above its $135.46 low for the year, set Nov. 2. The stock has still lost 54.87% over 12 months, while XLF gained 9.60%. It trades under its 200-day average and far below its May 14 peak of $222.35.
Heavy volume backed Tuesday's jump, and on Oct. 27 the 50-day average rose above the 200-day, a pattern called a golden cross. Momentum has not turned, though: the MACD indicator sits beneath both zero and its signal line.
Shares need to hold above $139.00 to keep Tuesday's gains, and $155.50 is the next hurdle traders watch.
COIN Shares Are Jumping
COIN Price Action: Coinbase shares were up 7.22% at $147.78 at the time of publication on Tuesday, according to Benzinga Pro.