- Coinbase insiders like Brian Armstrong are selling the stock.
- This trend is likely because the stock has surged hard in the past few months.
- Coinbase has retreated as investors sell the spot Bitcoin ETF.
Coinbase stock price has pulled back in the past few weeks as cryptocurrencies pull back. COIN retreated to a low of $124.75 on Friday, down by more than 32% from its highest point this month. It has joined other crypto-related stocks like MicroStrategy (MSTR), Hut 8 Mining, Riot Platform, and Marathon Digital that have plunged.
Coinbase insiders are selling
Coinbase share price has pulled back as investors react to the spot Bitcoin ETFs by leading companies like Blackrock, Franklin Templeton, and Invesco. In theory, this launch has implications for Coinbase.
The first implication is that the company will start receiving fees from these Bitcoin ETF providers since it is the custodian. In this case, the company has become equivalent to other custody companies in finance like State Street and Bank of New York Mellon.
The company will also solidify its role in the crypto services industry, meaning that it could attract more business in the future.
On the other hand, a shift from real Bitcoin to ETFs could have a negative implication because of the fees the company charges when people buy and sell these coins.
Other catalysts could have an impact on Coinbase stock price. First, there are signs that Base, its smart contract platform is not growing as fast as expected. Data by DeFi Llama shows that the network’s total value locked (TVL) has moved below $400 million, where it has been in the past few months. It has been overtaken by the likes of PulseChain and Manta.
At the same time, there are signs that Coinbase insiders are selling the stock, possibly to take advantage of the recent rally. There have been 45 sell transactions in the past 3 months and 54 in the past six months.
In all, investors have sold over 2.1 million shares in the past 12 months. Going by the current price, these stocks are valued at over $287 million. Some of the insiders selling are Emilie Choi (COO), Paul Grewal (CLO), and Brian Armstrong.
Insider sales are usually seen as being negative for a stock. However, in some cases, these sales are usually logical, especially after the stock surges as Coinbase did.
Coinbase stock price forecast
The daily chart shows that the COIN share price has pulled back in the past few days as investors sell the Bitcoin ETF approval. The shares have retested the key support at $114.67, the highest swing in July. This is known as a break and retest pattern, which is a positive sign.
Coinbase stock price has remained above the 100-day moving average. It is also nearing the oversold level, as evidenced by the Relative Strength Index (RSI) and the Stochastic Oscillator.
Therefore, the outlook for Coinbase share price is bullish, with the initial resistance point to watch being the YTD high of $187.50. This price is about 52% above the current level.
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