Coinbase shares rose 5.6% in early trading.
Though shares of the cryptocurrency trading platform have fallen from their initial public offering price, “that negativity’s flushed out,” Blue Line Capital founder and President Bill Baruch told CNBC’s“Trading Nation”on Friday.
“I think their user growth is going to exceed verified users of 60 million, and I think that’s going to be sort of a benchmark that they’re going to continue to feed on. Trading activity’s where they get paid as well. I think that’s going to pick up” even if major crypto assets such asbitcoinorethereumstruggle, he said.
That bodes well for Coinbase’s second-quarter report, scheduled for Tuesday afternoon, said Baruch, who owns bitcoin and ethereum.
“There’s a good trend line support it’s coming off of and it’s broken out of a wedge of resistance,” he said. “I think this thing can go to 290-300 and I think earnings should be positive and the guidance should be good.”
Coinbase shares ended trading at $258.26 on Friday, up about 1%. They climbed an additional 3.8% to $268 in Monday’s premarket trading session. A run to $290 or $300 would be a 12-16% increase from Friday’s closing levels.