Coinbase Stock Forecast as Bitcoin and Altcoins Dive: Is it Safe to Buy the Dip?

Coinbase stock extended its decline on Oct. 8 as weakness across Bitcoin and major altcoins weighed on crypto-linked equities. COIN traded near $175 after closing at $178.45 on Wednesday, leaving shares well below their recent $207–$208 region.

The decline comes even as Coinbase expands beyond traditional spot crypto trading. New developments involving Samsung, Deribit and equities could reduce its dependence on one source of market activity over time.

Bitcoin and Altcoins Have Pulled Back This Month

Coinbase and other top companies in the crypto industry have pulled back in the past few days as Bitcoin and most altcoins have slumped. Bitcoin has dropped from the September high of $87,198 to the current $82,190.

Ethereum has also retreated from a high of $2,806 on September 21 to the current $2,523. Other altcoins like Cardano, Venice Token, Zcash, and Midnight have all plunged. As a result, the market capitalization of all coins has slumped by over 1.45% in the last 24 hours.

Coinbase stock tends to underperform whenever Bitcoin and other altcoins are falling. For one, the company owns cryptocurrencies worth billions of dollars. It holds 17,311 Bitcoin worth over $1.4 billion, and 150,193 ETH tokens worth about $379 million.

A retreat in the crypto market also leads to a decline in trading volume in exchanges, which affects their revenue growth.

Coinbase is Working to Improve its Business

Coinbase has long been affected by the moves in the crypto market. As a result, the company is working to boost its growth in all market conditions.

In a statement on Wednesday, it said that it had completed the integration of Deribit, the company it acquired last year. This integration means that Coinbase Financial Markets will be able to connect US and global crypto derivatives into a single liquidity pool. This integration is important because Deribit is one of the biggest players in the crypto futures trading industry.

Coinbase is also deepening its role in the stablecoin industry. In a statement today, the company said that it will offer USDC custody services for Samsung. Samsung said that it will use USDC as its preferred stablecoin in its wallet, a notable development because its smartphones and other devices are used by billions of people around the world.

The company is also intensifying its tokenized stocks trading business. It has added thousands of stocks on its platform, allowing investors to buy, trade, and hold tokenized stocks of companies like Nvidia, Microsoft, and Meta Platforms. The Securities and Exchange Commission (SEC) has already given a five-year exemption allowing these tokenized companies to trade in the US.

The next major catalyst for Coinbase shares will be its earnings report, due on October 29. The results should offer more insight into the company’s growth trajectory. Because the crypto winter lasted for most of the quarter, analysts have set low expectations. The average estimate points to a 36% drop in third-quarter revenue to $1.19 billion, followed by a further 23.7% decline in the fourth quarter.

Coinbase Stock Price Technical Analysis

COIN stock chart | Source: TradingView

The daily chart shows that the COIN stock price has slumped in the past few days. It has moved from a high of $208 to the current $173, its lowest level since September 17th. This retreat happened after it found a strong resistance that is shown in red.

Coinbase has remained below the 50-day moving average, while the Relative Strength Index (RSI) has continued falling. Therefore, the most likely scenario is that it drops further in the near term and then resumes the upward trend. The rebound will happen if Bitcoin and other altcoins rebound.

This article is for informational purposes only and does not constitute financial or investment advice. Crypto prices, earnings estimates and technical levels may change as market conditions evolve.