Coinbase Shares Climb 16% as Retail Investors Boost Bitcoin and Ethereum Holdings

Highlights:

• Coinbase shares surged from $141 to $164.32 in one session due to strong demand.
• CEO Armstrong said retail users held strong, buying Bitcoin and Ethereum during the dip.
• The stock rally contrasts with a large quarterly loss and CEO stock sales.

The stock price of Coinbase (COIN) shares surged significantly in the latest trading session. COIN opened at $141 and closed at $164.32, adding $23.23 in one day. The rise came after weeks of volatility in both cryptocurrency markets and Coinbase’s own share price. 

Retail Accumulation Strengthens During Market Volatility

Brian Armstrong, the company’s CEO, pointed out that individual users continued to accumulate Bitcoin and Ethereum even during price declines. Armstrong said retail users either increased or kept their crypto holdings despite price swings. Even during volatility, many continued “buying the dip,” and balances remained strong.

Armstrong added that most of the buying focused on Bitcoin and Ethereum, as these assets generate the highest trading volume on Coinbase. However, this data reflects internal user activity on the exchange, not overall blockchain usage. According to him, many customers showed “diamond hands” during the market drop. As a result, retail wallet balances were higher in February than in December.

Technical Chart Signals Key Resistance Levels Ahead

Market analysts are closely watching Coinbase’s technical chart. Analyst Ace said the stock is testing key Fibonacci retracement levels. The next resistance level is $186.19. After that, resistance stands at $279.10, $365.48, and $426.98. Analysts say the chart still looks corrective unless the price breaks above $186.19.

Even with price swings, Coinbase has stayed above $125.81. Analysts see this as a sign of long-term strength. Wall Street firms have also changed their price targets. Bernstein expects the stock to reach $212. In a more positive case, it sees a move to $500, which would mark a new all-time high.

Coinbase’s latest earnings report added fresh pressure, even as the stock rallied. For the fourth quarter ending December 31, the company reported a net loss of $666.7 million. This result missed Wall Street expectations. The weak earnings stood in contrast to the strong stock performance seen in recent weeks.

Investors also noticed insider activity. Brian Armstrong sold more than $100 million worth of shares recently. Over the past year, his total sales reached around $500 million. Insider selling often draws attention, but it can relate to diversification or personal financial planning, not always negative signals.

ARK Invest Resumes Buying Coinbase Shares

Alongside the recent surge in Coinbase shares and steady retail buying activity, institutional interest is also picking up again. ARK Invest, led by Cathie Wood, has resumed buying Coinbase stock just days after decreasing its stake. The firm purchased nearly $15 million worth of shares in Coinbase.

The latest disclosures from ARK revealed that the investment firm purchased 66,545 shares of the company stock through its ARK Innovation ETF, 16,832 shares through its Next Generation Internet ETF, and 9,477 shares through its Fintech Innovation ETF. The decision shows that the company has gained confidence from a significant investment institution, despite earnings pressure and insider sales affecting its outlook.