Coinbase, a leading crypto exchange, faces challenging market conditions that have significantly reduced its stock value in 2024. Technical indicators suggest a possible further decline, while analysts remain divided over the company's future prospects.
Technical Indicators Point to Further Decline
Recently, Coinbase’s shares dropped from $350 to below $200. The current valuation is about $190, and technical indicators signal further decline. Daily charts for the stock show two risky patterns indicating a likely crash to $150. The bearish signal arises from the impending crossover of its 50-day and 200-day moving averages.
Analysts Divided on Coinbase’s Outlook
Despite the negative outlook, Wall Street analysts are optimistic about COIN. Some predict the stock could rise to $310 this year, forecasting a 23.7% revenue growth leading to $8.12 billion. Analysts have noted the strong correlation between crypto price fluctuations and Coinbase’s revenues.
Coinbase’s Strategic Shift Beyond Trading Revenue
Market volatility likely prompted Coinbase to diversify its business to reduce reliance on transaction revenue alone. The latest financial outlook indicates that $1.5 billion in income was driven by transactions, whereas $641 million was generated through subscriptions and other sources such as blockchain rewards and custodial fees.
Unfavorable market conditions and technical indicators point to a potential further decline in Coinbase stocks. However, some analysts’ optimistic forecasts give hope for recovery. Strategic business changes may help the company maintain stability in the volatile crypto economy.
