Why Coinbase Is Trading Higher Today

Coinbase Global Inc COIN is trading higher Monday morning after Goldman Sachs initiated coverage on the cryptocurrency exchange platform.

What Happened: Goldman Sachs analyst Will Nance initiated coverage on Coinbase with a Buy rating and announced a price target of $306 on Monday.

See also: How to Buy Coinbase (COIN) Stock

The analyst cited Coinbase's leading consumer platform being positioned in an ecosystem experiencing strong growth. The analyst also noted Coinbase is well-positioned to benefit from volatility in cryptocurrencies. 

Recently, the cryptocurrency space experienced extreme volatility as Bitcoin BTC/USD and Ethereum ETH/USD, the two largest cryptocurrencies by market cap, sold off more than 50% from all-time highs before bouncing. 

Related Link: Cathie Wood Loads Up Yet Another $51M In Coinbase As Shares Slump Amid Bitcoin-Led Crypto Carnage

Price Action: Coinbase traded as high as $429.54 on the day of its direct listing. Since that time, the stock has trended lower.

At last check Monday, Coinbase was up 3.08% in premarket trading at $231.36.

Bitcoin was up 11.73% and Ethereum was up 14.63% at last check Monday. 

Photo courtesy of Coinbase.