Shares of cryptocurrency exchange Coinbase Global (COIN) are down 3% following a huge rally in the stock over the past week.
Prior to today (October 15), COIN stock had risen 15% in the last five trading sessions as investors bet on a comeback in cryptocurrencies following a prolonged slump over the summer months. But now, it appears that the rally in Coinbase stock is running out of steam.
There wasn’t any immediate company news that would send Coinbase Global’s share price lower. Analysts are speculating that investors are taking a breather after bidding the share price up furiously in recent days. Coinbase Global is the world’s second-largest cryptocurrency exchange after privately held Binance Holdings, and its stock tends to rise and fall alongside prices for Bitcoin (BTC-USD) and Ethereum (ETH-USD).
Crypto Is Rangebound
Cryptocurrencies have largely traded sideways since the end of June. Bitcoin, which is the biggest crypto by market capitalization, has been rangebound since the beginning of September, trading between $60,000 and $65,000 per digital token.
Bitcoin and other cryptocurrencies started the year with a bang. After spot Bitcoin exchange-traded funds (ETFs) were approved in the U.S. at the end of January, the price of BTC rose to an all-time high of just under $74,000. However, the price moved lower after a halving event that took place this April.
A halving event is when the available supply of Bitcoin, and the rewards for mining it, are reduced by 50%. Coinbase Global’s stock is now up 11% on the year following the big move higher over the past week.
Is COIN Stock a Buy?
Coinbase Global stock has a Moderate Buy consensus rating among 15 Wall Street analysts. That rating is based on seven Buys, seven Holds, and one Sell assigned in the last three months. The average COIN price target of $258.17 implies 33.49% upside from current levels.
