Can Coinbase shares surge 50% higher after Facebook deal?

October 19, 2021 21:43

Shares in Coinbase jumped on the announcement that Facebook will store funds from its new and upcoming digital wallet with the cryptocurrency exchange. It’s a big boost for Coinbase who shares collapsed 50% from its post-IPO price high, to then rally back up 50% to current levels.  

Coinbase will act as the custody partner to Facebook’s new digital wallet called Novi. This will allow users to convert local currencies into cryptocurrency from its own mobile app that will have seamless integration with other Facebook products.  

The rollout will start with a pilot project in the U.S. and Guatemala using the stablecoin Pax Dollar. It’s been a good quarter for Coinbase who also recently announced a surge in dealing volumes and a 1,100% growth in net revenues from last year.  

Source: Admirals MetaTrader 5, COIN.US, Daily - Data range: from 1 Jun 2021 to 19 Oct 2021, performed on 19 Oct 2021 at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. Last five-year results not available.  

Since the Coinbase IPO on 14 April 2021, the highest price level the stock reached was around ~$429.54. Since then the price collapsed to a record low of ~$208.00 on 17 May.  

However, the stock price seems to have stabilised and is now up nearly 50% higher. If the tie-up with Facebook can lift investor sentiment, then investors may look to the next major resistance level for the stock which is the record high around ~$429.54 - a near 50% move higher from current levels.  

Did you know that you can find real-time, actionable trading ideas on thousands of markets from the Trading Central Technical Insight Lookup indicator in the Premium Analytics section of the Admirals Client portal area?   

Open an account and use the indicator for yourself to help you master the markets today.  


The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals’ investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following: 

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.  
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.  
  • With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest.  
  • The Analysis is prepared by an independent analyst, Jitan Solanki (analyst), (hereinafter “Author”) based on their personal estimations.  
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.  
  • Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.  
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved. 


Jitanchandra Solanki
Jitanchandra Solanki Financial Markets Author, Admirals London

Jitanchandra is a financial markets author with more than 15 years experience trading currencies, indices and US equities. He is an accredited Market Technician with a BA Hons degree.