Coinbase stock price continues to underperform the broader market this year despite the modest optimism from Wall Street analysts.
Coinbase stock has dropped by approximately 45% from its highest level in 2025. The company faces major headwinds despite the ongoing optimism among analysts. Cryptocurrencies remain under pressure, with Coinbase’s profitability expected to decline.
Analysts are Bullish on Coinbase Shares
Coinbase, the biggest cryptocurrency exchange in the United States, was trading at $240 on January 16, down by approximately 45% from its highest point in 2025. In contrast, top American indices like the S&P 500, Dow Jones, and Nasdaq 100 are all hovering near their all-time highs.
Coinbase’s performance mirrors that of other companies in the crypto industry like Robinhood, Strategy, Metaplanet, and PayPal.
The ongoing weakness occurred even as some key Wall Street analysts delivered a bullish outlook for the company. Bank of America analysts boosted their rating from hold to buy and their target to $340. Goldman Sachs analysts also boosted the target to $303 while Oppenheimer maintained its outperform rating.
The average estimate among the 32 analysts tracked by MarketBeat is $362, up by 51% from the current level.
The optimism among analysts is attributed to Coinbase's strong market share in the United States and its recently launched initiatives. Coinbase launched a predictions platform in collaboration with Kalshi. It also announced plans to start offering tokenized stocks, a move that is expected to attract more customers.
COIN Faces Numerous Headwinds
Still, the company faces major headwinds that may affect its recovery. Firstly, competition in the United States and other markets is rising. Companies like SoFi, Vanguard, and Charles Schwab are all working to launch crypto trading on their platforms.
Secondly, the recent crypto market rally has stalled after the company withdrew its support of the CLARITY Act, citing provisions on stablecoin yield. The company argues that the bill will eliminate stablecoin yields, a move that could negatively impact one of its fastest-growing segments.
Coinbase and other crypto exchanges underperform the market whenever cryptocurrencies are not performing well. Indeed, third-party data indicates that trading volume on centralized and decentralized exchanges has remained low in recent months.
Additionally, analysts expect that Coinbase’s profitability will remain under pressure in the coming years as it continues to invest in its ecosystem. The average estimate among analysts is that its earnings per share in 2025 was $7.82, down from $9.48 in 2024. This is projected to drop further to $6.67 this year.
Coinbase Stock Price Technical Analysis
The daily chart indicates that the COIN stock price has retreated in recent months, moving from last year’s high of $443 to $240 today.
The stock recently formed a death cross pattern, where the 50-day Exponential Moving Average moved below the 200-day one. A death cross is recognized as one of the most common bearish reversal patterns in technical analysis.
The stock is now forming a bearish pennant pattern, which consists of a vertical line and a symmetrical triangle pattern.
Furthermore, it has moved below the 61.8% Fibonacci Retracement level at $257 and has remained below the Supertrend indicator. Therefore, the most likely forecast for the COIN stock price is bearish, with the next key target level being the psychological level at $100. This bearish outlook will be invalidated if Bitcoin (BTC) and other cryptocurrencies experience a significant bounce back.