tl;dr
Ark Invest, led by Cathie Wood, purchased 93,797 shares of Coinbase (COIN) worth approximately $17.8 million during the recent market downturn. The firm made the purchase through three exchange-traded funds (ETFs) and also acquired shares of the trading app Robinhood. This marked Ark Invest's first ...
Ark Invest, led by Cathie Wood, purchased 93,797 shares of Coinbase (COIN) worth approximately $17.8 million during the recent market downturn. The firm made the purchase through three exchange-traded funds (ETFs) and also acquired shares of the trading app Robinhood. This marked Ark Invest's first purchase of COIN since June 2023, following a period of selling off the stock to realize profits as its value surged alongside the crypto market. Additionally, the firm sold shares of Jack Dorsey's Block.
Ark Invest made the COIN purchase through three exchange-traded funds (ETFs), including the ARK Innovation ETF (ARKK), the Ark Fintech Innovation ETF (ARKF), and the ARK Next Generation Internet ETF (ARKW). ARKK acquired 65,165 COIN worth $12.3 million, ARKF purchased 15,629 COIN worth $3 million, and ARKW bought 13,003 shares valued at $2.5 million. The purchases marked Ark Invest’s first since June 2023, when the company bought $21 million worth of COIN. Since then, the asset management giant has been offloading the Coinbase stock to realize profits as the asset surged in value alongside the crypto market.
Ark Invest saw the market’s recent plunge as an opportunity to increase its COIN stash in preparation for future rallies. The Coinbase stock fell as low as $173 on Monday before recovering slightly to $197. According to TradingView data, the asset was trading at $191 at the time of writing. Notably, COIN was not the crypto-related stock Ark Invest purchased on Monday. The firm also acquired 681,885 shares worth $11.2 million in the crypto and stock trading app Robinhood. Conversely, Ark sold $26 million worth of Jack Dorsey’s Block shares.
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Technical Analysis: Unraveling Market Trends
In the current market landscape, we observe a strong bullish trend as indicated by the significant breakout above the key resistance level of 3500 for the S&P 500 index. The Relative Strength Index (RSI) further corroborates this bullish sentiment, hovering comfortably in the overbought territory at 70. This suggests a robust buying momentum supporting the upward price movement.
Additionally, the moving average convergence divergence (MACD) indicator exhibits a clear bullish crossover, underscoring the strengthening uptrend momentum. However, it's crucial to remain mindful of potential profit-taking or market corrections as the RSI approaches the 80 level, indicating an extremely overbought condition.
On the contrary, the technology sector faces a notable resistance near the 150 level for the NASDAQ index, potentially forming a double top pattern. This warrants vigilance for a potential trend reversal if the index fails to breach this resistance level. The MACD indicator also signals a weakening bullish momentum, emphasizing the need for cautious monitoring in this sector.
In summary, while the broader market displays a robust bullish posture, the technology sector demands a more circumspect approach. Traders and investors should remain attentive to key support and resistance levels, combined with the insights from technical indicators, to navigate the current market dynamics effectively.
More about Coinbase Global Inc
Company: Coinbase Global Inc
Description: Coinbase Global, Inc. provides financial infrastructure and technology for the crypto economy. The company is headquartered in Wilmington, Delaware.
Sector: FINANCE, FINANCE SERVICES
Market Cap: $47,079,125,000
Current Price: $33.65
Dividend Yield: None
Price/Earnings Ratio: 5.63
EPS: 18.61
Beta: 0.33
Volume: 4,495,277,000
50-Day Moving Average: $263.94
200-Day Moving Average: $3.27
Relative Strength Index (RSI): 1.083