Artificial intelligence powerhouse Nvidia, which also pioneered the graphics processing units (GPUs) now used in cryptocurrency mining, dominated this month's list of new buys the best mutual funds. Coinbase Global, which provides a platform to invest in and use crypto, joins Nvidia stock on the list.
Profiled in The New America column on April 26, Coinbase has popped onto the IBD Leaderboard watchlist. Nvidia is already a full-fledged member of this curated list of leading growth stocks.
As Nvidia keeps setting record highs, Coinbase stock continues to work on a new base and potential breakout.
In May, Coinbase delivered a major earnings and revenue beat. But analysts were mixed on the cryptocurrency platform's outlook, keeping Coinbase stock mired below its 50-day moving average. Since then, Coinbase has climbed back above that benchmark.
As it targets a 283.48 buy point in a cup pattern, investors should note that this is a fourth-stage base for Coinbase stock, which is not ideal. That said, Coinbase has been rallying well in recent weeks, creating an uptick in the relative strength line.
On Monday, Coinbase bounced back from an initial drop to close more than 2% higher at just under 250. In a sign of rebounding technical strength, the 21-day exponential moving average has started to poke its head back above the longer-term 50-day line.
Heading into the final hour of trading Tuesday, Coinbase is down over 2% but showing resilience, coming off earlier lows. The stock may complete a handle this week, which would offer a lower entry point at 268.80.
Meanwhile, Nvidia recovered from Monday's early decline to close in positive territory and near the top of the day's price range. After Nvidia's stock split, shares now trade right around 120.
Nvidia Begins Post-Stock-Split Era With Price-Target Hikes
Coinbase Taps Trends In Spot Bitcoin ETFs, Crypto Wallets
Headquartered in San Francisco, Coinbase helps people and institutions to engage with crypto assets. The 2021 IPO also focuses on providing critical infrastructure for onchain activity, a category of metrics that describe the growth and health of a blockchain network's user base.
Earlier this month, the company kicked off a new chapter in its Coinbase Wallet. As noted in the company's blog, it aims to provide seamless transactions and cross-app portability.
Cryptocurrency prices have been doing well since launch of spot bitcoin exchange traded funds in January. Serving as the custodian for the majority of the spot bitcoin ETFs, Coinbase is a key player in this space.
In May, Coinbase stock surged on an upgrade and major price hike from Bank of America. At the same time, Bitcoin rose sharply as institutional investors poured hundreds of millions of dollars into spot bitcoin ETFs, which are exchange-traded products (ETPs) that hold bitcoins in a digital vault.
On May 23, the Securities and Exchange Commission approved 19b-4 forms for eight ether ETF applications, paving the way for spot ethereum ETFs to launch later this year.
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
