Coinbase Stock Price is in a Freefall: Will it Rebound Ahead of Earnings?

Key Insights

• Coinbase’s stock price has crashed by 60% from its highest level last year.
• The drop is because of the ongoing crypto market crash.
• Coinbase will publish its financial results next week.

Coinbase stock price continued its strong freefall this year, reaching a low of $180, its lowest swing since April last year. COIN stock has crashed by 60% from its peak last year.

Its market capitalization has dropped from over $90 billion to $48 billion. So, will the COIN stock rebound ahead of its earnings?

Coinbase Stock Price Has Tanked Amid the Ongoing Crypto Market Crash

The main reason why the Coinbase stock price has crashed in the past few months is the ongoing crypto market dive. This dive has affected Bitcoin and most altcoins. Bitcoin has dropped from the all-time high of $126,200 in October last year to $76,000 today.

Crypto exchanges experience low volume when Bitcoin and other altcoins are in a freefall as investors remain on the sidelines.

Data compiled by CoinMarketCap shows that Coinbase’s volume in the last 24 hours was $3.36 billion. That’s much lower than what it handled during the crypto bull run.

The ongoing crypto market crash is happening because of the October 10 liquidation event. This wiped out over $20 billion in a day. Since then, volume in the spot and the futures market has continued falling.

For example, data shows that futures open interest in the crypto industry has dropped sharply. It fell from $255 billion to $130 billion today. This highlights weakening investor activity.

The same has happened in the ETF market, where Coinbase is the biggest custodian. Data shows that spot Bitcoin ETFs have shed billions of assets in the past few months.

Crypto prices have dropped due to ongoing geopolitical issues. Analysts warn that rising tensions could further pressure the market. This explains why the price of crude oil has jumped in the past few days.

Coinbase to Publish its Earnings

The next major catalyst for the COIN stock price will be its earnings. This will come out next week. These results will shed light on its performance in the last quarter and what to expect in the near term.

Data compiled by Yahoo Finance shows that the average revenue estimate is $1.86 billion. That’s down by 18% from the same period in 2024. This revenue drop will be because of the crypto crash that happened during the quarter

If this estimate is accurate, the annual revenue will be $7.27 billion, up by 10.7% from what it made in 2024. The company’s forward guidance for the first quarter is $1.91 billion, down by 6% from last year.

The management is aiming to diversify its business by launching a new predictions marketplace. It’s an industry that is booming. It is also aiming to move into the stock trading industry by leveraging the tokenization industry.

This diversification explains why analysts remain bullish about the company. The average estimate stands at $337, a sharp rise from the current $179.

Coinbase Stock Price Technical Analysis

The daily timeframe chart shows Coinbase stock in a strong downward spiral. It has dropped steadily over the past few months. It has crashed from a high of $444 in July last year to the current $180.

The stock has moved below the key support level at $223, its lowest level on December 31st last year. It has remained below the 50-day Exponential Moving Average (EMA).

The stock has moved to the lower side of the Bollinger Bands indicator. Also, the Average Directional Index (ADX) has jumped to 29, a sign that the downtrend is gaining momentum.

Therefore, the stock will likely keep falling in the coming days and weeks. It may drop to the key support level at $145, its lowest point in April this year. This target is about 20% below the current level.

The stock will start rebounding when the crypto market recovers. This is possible now that the Crypto Fear and Greed Index has shifted into the extreme fear zone.

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