Coinbase stock price has gapped higher over the past two trading days, driven by a rebound in Bitcoin and other cryptocurrencies. COIN jumped to $165.50, up modestly from the year-to-date low of $140. Still, the company faces major challenges despite its ambitions to create an all-in-one financial superapp.
Coinbase Stock Facing Stablecoin and ETF Headwinds
Coinbase, the largest crypto trading company in the United States, is facing major challenges that will likely affect its business.
For example, the market capitalization of the USDC token is in free fall, moving from over $80 billion last month to $72.9 billion at the moment. This retreat will affect its business, since it depends on and maintains interest in the amount of USDC stablecoins on its platform.
The decline is also notable because most analysts believe that stablecoins are a growing business and they will cross the $4 trillion market cap in the next 64 years.
READ MORE: Best 3 Altcoins to Buy as the Crypto Fear and Greed Index Rises
Meanwhile, Coinbase will likely make less money now that the number of crypto ETFs on its platform has dropped sharply in the past few months. Bitcoin ETFs shed over $4.5 billion in April and over $6 billion since the year started. Ethereum ETFs also shed over $500 million in assets. Coinbase is the biggest crypto ETF custodian in the world.
Analysts are pessimistic about Coinbase, with the average estimate for annual revenue at $6.12 billion, down 14% this year. There is a possibility that it will miss revenue and earnings per share (EPS) targets, as it has in the past two quarters.
Coinbase has taken measures to reduce its focus on transaction revenue. For example, it has launched a prediction marketplace, where people can make predictions on several topics. It has also become a major player in agentic commerce.
Still, alongside its launch of tokenized stocks, the new initiatives will take time to generate substantial revenue and profits for the company.
Coinbase Stock Technical Analysis
The daily timeframe chart shows that the COIN stock price has found substantial support at $141.95 and then rebounded to the current $165.50.
Still, despite the rebound, the Average Directional Index (ADX) has pulled back to 18.3 from last week’s high of 20. Therefore, the most likely COIN stock price forecast is bearish, with the next key target being at $141.
A move below that level will point to more downside, potentially to 120. The bullish view will become invalid if it rises above the 100-day exponential moving average of $187.87.
READ MORE: HBAR Price Prediction as Hedera Makes Just $120k in Fees This Year
