- Coinbase stock price has slumped by 65% from its highest point in 2025.
- The company’s business is facing major headwinds as odds of a crypto crash rise.
- Technical analysis suggests that the stock will crash to the key support level at $100.
Coinbase stock price dropped for four consecutive days and is hovering near its lowest level since February 24. COIN has dropped by nearly 65% from its highest point last year. This report explores whether it is safe to buy the dip as traders watch the ongoing progress on the CLARITY Act.
Coinbase Stock in Focus as Traders Watch CLARITY Act Progress
COIN stock price has come under pressure after a draft of the CLARITY Act came public last week, raising concerns that it will not pass in the Senate after the recent deliberations.
According to journalist Eleanor Terrett, the bill will restrict companies like Coinbase and Robinhood from offering stablecoin rewards to their customers, a move that may reduce the pace of stablecoin growth.
However, in reality, the bill, if it passes, may benefit Coinbase as the stablecoin industry will keep growing in the foreseeable future, even if the bill passes without yield. In a recent note, Peter Christiansen, a Citi analyst, said:
“We also do not believe this development thwarts real-world use cases for stablecoins, including cross-border payments or agentic commerce.”
While the CLARITY Act offers a major headwind for Coinbase stock is the fact that the crypto market crash may continue in the foreseeable future.
READ MORE: Dow Jones Index Is in a Freefall: Will it Rebound as Fear and Greed Index Sinks?
Bitcoin price has formed a bearish flag pattern on the three-day chart, and remains below the 50-day moving average and the Supertrend indicator.
As a result, it may continue falling in the near term, potentially to $50,000, a move that will lead to a strong bearish breakdown for other altcoins. Coinbase and other crypto exchanges struggle when Bitcoin and other cryptocurrencies are falling.
The most bearish case for Bitcoin price is the ongoing Iran war that has pushed crude oil prices much higher in the past few months. Traders believe that the ongoing crude oil surge will lead to a higher inflation, which will make it hard for the Federal Reserve to cut interest rates.
Coinbase stock is also facing substantial competition risks, especially from companies like Hyperliquid and Aster, which have become popular among traders. Hyperliquid has become popular during the ongoing Iran war because of its perpetual futures products.
At the same time, there is a likelihood that the company’s products, such as stock trading and prediction market will take a long time to generate substantial revenue and profits for the company.
COIN Stock Price Technical Analysis
The three-day chart shows that the COIN stock price has slumped in the past few months, falling from a high of $443 in July to the current $161. It has dropped below the 61.8% Fibonacci Retracement level at $190.
The stock is attempting to move below the important support level at $144.15, its lowest level since September 2024 and April 20245. It was also the lowest level in February this year.
The stock has remained below all moving averages, a sign that bears are still in control. It has also formed an inverted cup-and-handle pattern, which often leads to more downside.
Therefore, the next key target to watch will be $144.15. A move below that level will point to more downside, potentially to the psychological level at $100, which is about 40% below the current level.
READ MORE: Bitcoin and Altcoins Like Pi Network, Dogecoin, ETH at Risk as US-Iran War Takes New Twist
