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If Facebook hits this level it's a 'straight shot' back to the highs, technical analyst says

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What's next for Facebook after crypto launch

Crypto has a new face.

Facebook officially announced its new cryptocurrency on Tuesday. Called Libra, the digital currency is already backed by 27 companies including eBay, Lyft, Spotify and Uber. While Libra is not expected to launch until the first half of 2020, the Street is already thinking about the impact this latest venture could have on the company's bottom line.

From a technical standpoint, Miller Tabak's Matt Maley argues that the stock chart confirms a bigger rally may be ahead.

"The chart looks pretty good. Obviously had a horrendous second half of the year last year when it got absolutely clobbered, but it broke above ... its six month trendline at the beginning of the year, so that was positive," he said.

While Facebook's recent trading has been on the "choppy" side, Maley noted that the stock's ability to hold above $160 on each of its recent pullbacks indicates upward momentum. The next key level he's watching is $195, which is about 4% higher than where the stock closed on Tuesday.

"If it can break above that [$195] it's going to be a kind of straight shot up to its all-time highs I think. ... So the key is even though the stock's rallied 50% off its low from late last year, it still has double-digit percentage upside potential if it can break above that key $195 resistance level."

Nancy Tengler of ButcherJoseph Asset Management called Facebook's crypto push a "smart move" since the use of blockchain could help the company address ongoing privacy concerns and regulatory problems.

"The privacy issues, the governance issues at that company are somewhat troubling to me. But I actually think this was a very clever move. We had argued that blockchain would solve some of the privacy problem, just in the market in general, and they've basically adapted that technology," she said Tuesday on CNBC's "Trading Nation." She also called the decision to differentiate the cryptocurrency from Facebook itself — through distinct branding — "wise."

Shares of Facebook have gained about 44% this year, but after their steep slide at the end of 2018, they are still roughly 14% below their $218.62 all-time high. In Wednesday's premarket, they were trading at $187, down 0.78%. 

Tengler says now is a good buying opportunity since the stock still looks "compelling" from a valuation standpoint and the company is "still generating solid growth."

"Just on the basic business with Instagram monetizing Whatsapp, we think you have to own this stock for the next three to five years," she said.

Disclosure: ButcherJoseph Asset Management owns shares of Facebook.