Coinbase Stock Price Sees Slight Uptick Ahead of Predictions Market Launch
Coinbase stock price rose by 1.4% on Tuesday as investors waited for the upcoming predictions market launch, a move that could potentially boost the company’s revenue and competitiveness in the cryptocurrency exchange market.
The company’s stock has been under pressure in recent months, with its price declining by over 43% from its highest point this year. As of Tuesday, Coinbase shares were trading at $252.70, near its lowest level since Dec. 1, with a market capitalization of $68 billion, down from over $90 billion in July. The decline is largely attributed to the ongoing crypto market crash, which has brought Bitcoin (BTC) from the year-to-date high of $126,200 to the current $85,000, and reduced the market capitalization of all coins from $4.28 trillion to $2.96 trillion.
Coinbase’s Challenges and Upcoming Events
Coinbase is facing significant headwinds, including rising competition from companies like SoFi, Vanguard, and Charles Schwab, which have announced plans to launch crypto solutions. The company’s average revenue estimate for the current quarter is expected to be $1.96 billion, down by 13.87% from the same period last year, according to data compiled by Yahoo Finance. Analysts also expect the company’s earnings per share to come in at $1.06, down from $4.68 in the same quarter last year.
However, the upcoming launch of Coinbase’s predictions market, scheduled for later on Tuesday at the ‘Coinbase System Update’ event, is expected to be a key catalyst for the company’s stock price. The product is anticipated to be launched in collaboration with Kalshi, the largest player in the industry, which has seen its valuation jump to over $11 billion. The predictions industry is booming, with Polymarket, Kalshi’s biggest rival, also raising money at a valuation of between $11 billion and $15 billion.
Base Layer-2 Network and $BASE Token Launch
Meanwhile, Base, the layer-2 network owned by Coinbase, is expected to announce the roadmap for the $BASE token launch, which could help the company start to monetize its investment. The launch of the $BASE token is seen as a significant development for Coinbase, as it could provide a new revenue stream and increase the company’s competitiveness in the cryptocurrency market.
Coinbase Stock Price Technical Analysis
The daily timeframe chart shows that the Coinbase share price has come under pressure in the past few months, moving below the important support level at $290, its lowest level on August 5 this year. The stock has formed a death cross pattern, with the 50-day and 200-day Exponential Moving Averages crossing each other.
COIN stock chart | Source: crypto.news
Based on the technical analysis, the most likely scenario is that the stock will continue to fall in the next few days, with the next key target being at $231, its lowest level. A drop below that level could point to more downside, potentially to the psychological level at $200.
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