Coinbase Global Inc. (NASDAQ: COIN) stock is often considered a leading indicator of the cryptocurrency market. The centralized exchange became a public company in 2021, and the crypto bear market massively impacted its price in 2022, which is now recovering.
Nevertheless, the price recovery opens an exit opportunity for major players like Ark Invest. Reportedly, Cathie Wood’s investment firm has dumped around $56.6 million of Coinbase shares in the past two days.
According to The Block, Ark Invest sold 180,422 shares on December 6 for around $24.3 million. Previously, the investment company sold $33.3 million worth of COIN one day before and $15 million last week.
NASDAQ: COIN weekly chart. Source: TradingView
Despite the long-term losses since its IPO, COIN has been trending upward since its lowest point in the chart. This happens while Coinbase faces relevant challenges in the regulatory spectrum, fighting a legal battle against the United States Securities and Exchange Commission (SEC).
Coinbase was picked by BlackRock Inc. (NYSE: BLK) and other major players as the custodian for the spot Bitcoin ETF. Essentially, this validates the company’s business model and might contribute to its future growth.
Therefore, it is possible to see Coinbase stocks seeking 2021’s resistance in the $350 zone. However, institutional sell-offs could delay this movement with extra selling pressure.
All things considered, COIN performance will depend on both micro and macro conditions. Both the cryptocurrency and stock markets will play a significant role in further price action.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
