Coinbase Consolidates Post-Earnings Surge As Cathie Wood Offloads Stock: Will This Bull Flag Play Out?
Portfolio Pulse from Melanie Schaffer
Coinbase Global, Inc (NASDAQ:COIN) experienced a 2.7% drop on Friday, consolidating after a post-earnings surge. Ark Invest, led by Cathie Wood, sold 40,683 shares of Coinbase through ARK Innovation ETF (NYSE:ARKK) and Ark Fintech Innovation ETF (NYSE:ARKF), valued at $6.6 million. The article suggests a potential bull flag pattern for Coinbase, indicating a possible future upside. For diversified exposure to Coinbase's potential upside, AXS 2X Innovation ETF (NASDAQ:TARK) is recommended, while AXS Short Innovation Daily ETF (NASDAQ:SARK) is suggested for those bearish on Coinbase.
February 23, 2024 | 8:23 pm
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POSITIVE IMPACT
Coinbase is consolidating after a post-earnings surge, with a potential bull flag pattern indicating a future upside.
The consolidation and potential bull flag pattern suggest a positive outlook for COIN, despite recent sales by Ark Invest.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
TARK offers a diversified approach to betting on Coinbase's potential upside, being double-leveraged on ARKK's performance.
TARK's double-leveraged nature and focus on ARKK's performance, including a significant position in Coinbase, suggest a bullish opportunity for investors seeking diversified exposure.
CONFIDENCE 65
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Ark Fintech Innovation ETF (ARKF) also participated in the sale of Coinbase shares, aligning with ARKK's actions.
The sale of Coinbase shares by ARKF, similar to ARKK, suggests a coordinated investment strategy possibly indicating a bearish short-term view.
CONFIDENCE 70
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Ark Invest sold shares of Coinbase through ARKK, indicating a potential short-term bearish outlook from the fund.
The sale of Coinbase shares by Ark Invest through ARKK could indicate a short-term bearish outlook from the fund.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
SARK aims to inversely track ARKK, offering an option for investors bearish on Coinbase and its major holdings.
SARK's strategy to inversely track ARKK, which holds a significant position in Coinbase, offers a bearish investment option against Coinbase's potential upside.
CONFIDENCE 65
IMPORTANCE 50
RELEVANCE 60