Key Insights
- Coinbase stock price has formed a death cross pattern on the daily chart.
- The company will hold the System Update event on Wednesday.
- It is facing major competition risks as more companies enter the industry.
Coinbase stock price has plunged in the past few months. Also, this crash may accelerate as it has formed an alarming pattern on the daily chart.
COIN moved to $250, down sharply from the year-to-date high of $445. This crash may continue after the upcoming System Update event.
Coinbase Stock Price Technical Analysis Points to More Downside to $200
The daily timeframe chart shows that COIN has dropped sharply from its July high of $445. It now trades at about $250. It has plunged below the 61.8% Fibonacci Retracement level at $260, a sign that bears are gaining control.
Coinbase stock has moved below the Supertrend indicator, meaning that bears have prevailed. Worse, it has formed a death cross pattern as the 50-day and 200-day EMAs have crossed each other. A death cross pattern often leads to more downside.
The stock has moved below the important resistance level at $292.94, its lowest level in August and September this year.
Therefore, the stock will likely continue falling as sellers target the important support level at $230. That’s its lowest point in November. A drop below that level will point to more downside, potentially to the psychological level at $200. It is about 20% below the current level.
A move above the key resistance level at $285 would flip the setup. That price is also this month’s high. A breakout above it would invalidate the bearish outlook.
Coinbase to Launch Prediction Market at the System Update Event
The next important Coinbase news will come out today, December 17. At that time, the company hosts the System Update event at 2 PM PST.
Analysts expect that the company will launch a new prediction market. It will likely be powered by Kalshi, the biggest player in the industry.
The service will let users make predictions on major topics. It will cover politics, sports, culture, crypto, climate, economics, and financials. It opens the door for broad, issue‑based forecasting across many fields.
Coinbase joins other large companies that have launched their prediction markets in collaboration with Kalshi. The other notable ones are CNN, xStocks, and Barchart.
Coinbase hopes that the new service will bring in more revenue over time. It also hopes that the service will help it to diversify its business in periods when cryptocurrencies are in a bear market.
Base May Launch the $BASE Token
The other major news at the System Update event will come from Base, its layer-2 network. Traders on Kalshi predict that the company will announce the launch of the Base Token.
Base token is an important thing for Coinbase because, as a layer-2 network, the product doesn’t make a lot of money. As a result, launching the token will help the company monetize its stake by selling it over time.
Recent events show that Base may receive a multi-billion-dollar valuation. That’s because of its big market share in the layer-2 industry. For example, the recently launched Midnight token has achieved a $1 billion valuation without having an ecosystem.
Coinbase is Facing Major Risks
The upcoming System Update event matters for the company. It comes at a time when its biggest market is creating major risks. The update is meant to address those challenges and steady the business.
The main risk is that more companies are launching their crypto services in the US. It’s a move that will lead to more competition.
For example, Schwab, a company with millions of users in the country, has said that it would launch its crypto service in the first quarter. Similarly, SoFi, which also has millions of users, will do the same. Companies like OKX and Binance are also aiming to grow their market share there.
The other major risk is that the ongoing crypto market crash will lead to lower volume. This will translate to lower revenues and profitability in the coming weeks.
Indeed, Yahoo Finance data shows that analysts expect that the company’s Q4 revenue will come in at $1.96 billion. It’s down by 13.8% from the same period last year.
Crispus is a distinguished Financial Analyst at, bringing over 12 years of expertise in cryptocurrency markets, specializing in Bitcoin and altcoins. Renowned for his sharp insights at the nexus of market trends and breaking news, Crispus delivers actionable analysis to empower investors. His work is prominently featured across leading platforms, including BanklessTimes, CoinJournal, HypeIndex, SeekingAlpha, Forbes, InvestingCube, Investing.com, and MoneyTransfers.com, cementing his reputation as a trusted voice in the financial world.
