Coinbase (COIN) Stock Price Drops 20% in Two Weeks, Forms a Potential Double Top Pattern

Coinbase reports mixed Q2 earnings, beating revenue estimates but missing on adjusted EBITDA. Negative market sentiment and technical indicators suggest potential for further price decline.

Coinbase (NASDAQ:COIN) stock price has dropped more than 20% in the last two weeks amid the broader crypto market decline, forming a potential double top pattern.

Coinbase shares fell sharply in the past two weeks as the stock now trades at $218, showing a significant decline from the local top around $272 last month.

Coinbase stock now trades in a falling channel on the weekly chart, with the upper trendline resistance at $240 and lower support around $200.

From a technical perspective, COIN shares are showing a potential double top pattern on the weekly chart, along with a bearish divergence on the Relative Strength Index (RSI). This suggests that if Bitcoin’s price continues to fall, COIN shares might experience even more significant losses soon.

Coinbase Global Inc (NASDAQ:COIN), the largest cryptocurrency exchange in the United States by registered users and daily average traded volume, reported its second-quarter earnings on Thursday.

According to the report, the crypto exchange registered a total revenue of about $1.45 billion versus an estimate of $1.4 billion expected by analysts surveyed by FactSet.

However, the crypto exchange reported an adjusted EBITDA of about $596 million compared to $607.7 million estimates by Wall Street analysts.

Coinbase said that its total trading volume was $436 billion in Q2 2024 versus $547 billion in Q1 2024, and it had 11.2 million monthly transacting users (MTUs) in the recent quarter versus 11.7 million in the prior quarter.

“Our Q2 2024 results reflect the impact of lower crypto asset prices on our revenue and adjusted EBITDA,” said Alesia Haas, Coinbase’s chief financial officer.

"We continue to focus on driving down our operating expenses, which declined by 14% sequentially in Q2 2024, and we expect to achieve our target of reducing operating expenses, excluding traffic acquisition costs, to below $1 billion in H2 2024.”

Our Q2 2024 earnings report is now live onchain.

Mint the latest $COIN Earnings NFT to celebrate our progress toward economic freedom.

→ https://t.co/ekknIoTPxC pic.twitter.com/0Ecld0eLXn

— Coinbase (@coinbase) August 11, 2024

Cathie Wood’s Ark Investment sold 69,069 shares of Coinbase (NASDAQ:COIN) in the latest quarter, according to the recent 13F filing.

The total value of the COIN shares offloaded by Ark was around $14.8 million, based on Friday's closing price of $213.04 per share.

Notably, the company sold COIN shares despite the ongoing adoption of digital assets by institutional investors. Furthermore, Coinbase has played a crucial role in the approval and listing of spot Ether and Bitcoin ETFs in the United States, especially through providing liquidity and custody.

Coinbase stock closed down 0.5% at $213.04 on Friday and gained 1.4% in pre-market trading. The stock has a price target of $295.25 and a consensus rating of Hold from 24 analysts.

The crypto market remained volatile on Friday, with Bitcoin (BTC) and Ethereum (ETH) prices showing slight gains.

Major Coins In Green

Bitcoin was up 0.4% at $31,123.3 by 07:10 ET (11:10 GMT), while Ethereum rose 1.1% to $479.09. Both cryptocurrencies had fallen sharply in the past two weeks.

Among other major coins, Dogecoin gained 0.3%, and Shiba Inu dropped 1.1%.

The crypto market remained under pressure this week as key coins like Bitcoin and Ethereum continued to trade below crucial resistance levels.

However, some altcoins, such as AAVE coin, managed to post strong gains amid the market fall.

AAVE coin price skyrocketed 19% in the past 24 hours, reaching $128.77 on Friday. The token’s price surged as AAVE was listed on the Hong Kong stock exchange.

Moreover, a recent report by Messari showed that AAVE had the highest revenue among decentralized exchanges (DEXs) in the first half of 2024.

On the other hand, some coins continued to struggle this week. For instance, UNI coin price dropped 12% over the last seven days, trading at $31.03 on Friday.

The token’s price decline came as the decentralized exchange (DEX) reported a 90% drop in trading volume in H1 2