COIN Bounces Back to Its IPO Market Cap — Is More Upside in Sight?

Coinbase Reaches IPO Valuation Again, Fueled by Bullish Technical Signals

Coinbase (COIN) has powered back to $380, matching the valuation it commanded during its Nasdaq debut on April 15, 2021. This marks a dramatic recovery for the cryptocurrency exchange, which sank as low as $31.55 during the 2022 bear market, according to data from TradingView.

The recent surge has completed an inverse head-and-shoulders (H&S) pattern on Coinbase’s weekly chart—a classic bullish reversal formation that hints at further upside. Technical projections suggest COIN could climb as high as $660 in the months ahead.

How the Inverse Head-and-Shoulders Works

An inverse H&S is a well-known technical pattern that often signals the end of prolonged price declines. It features:

• A deep central low (the head), indicating the period of greatest selling pressure.
• Two shallower lows (the shoulders), showing diminishing bearish momentum on either side.

Confirmation occurs when the price breaks above the “neckline,” the resistance line connecting highs between the troughs. Typically, trading volume drops during the pattern’s development but surges sharply when the breakout happens, reflecting renewed interest.

Using a “measured move” technique, analysts estimate the potential price target by adding the distance from the neckline to the head to the breakout point. In Coinbase’s case, this calculation suggests a possible rise to $660.

Technical Breakout Gains Traction

COIN has now firmly breached its neckline resistance and is consolidating above it, lending further support to the bullish outlook. Trading volumes, quiet during the prolonged downturn, picked up notably in April 2024 as the right shoulder formed, signaling increased market conviction.

Analysts Turn More Bullish

Wall Street has grown increasingly optimistic about Coinbase’s prospects. Oppenheimer recently raised its price target for COIN to $395 from $293, reiterating an “outperform” rating. Analysts point to improving fundamentals and accelerating institutional interest in crypto markets as key reasons for the upbeat forecast.