DeFi

Spot

Coinbase stock slipped for eight straight days, the longest losing streak since July, as cryptocurrencies continued falling.
<h2 class="wp-block-heading" id="coinbase-is-facing-major-headwinds">Coinbase is facing major headwinds</h2>
Decentralized and centralized exchanges have come under pressure as cryptocurrency volume has dropped in the past few months.
Data from <a href="https://defillama.com/dexs" target="_blank" rel="noopener noreferrer nofollow">DeFi Llama</a> shows that the volume traded in DEXs peaked at $260 billion in March and then retreated to $175 billion in August. More data shows that the volume traded on CEX platforms stood at $1.2 trillion in August, down from $2.48 trillion in March.
This volume has dropped due to the weak performance of Bitcoin (<a href="https://crypto.news/price/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">BTC</a>) and other altcoins. Bitcoin remains in a bear market after falling by over 23% from its highest point this year. Similarly, Ethereum (<a href="https://crypto.news/price/ethereum/" target="_blank" rel="noopener noreferrer nofollow">ETH</a>) has dropped by 41% from its year-to-date high, while Solana (<a rel="noopener noreferrer nofollow" href="https://crypto.news/price/solana/">SOL</a>) is down by over 36%.
In most cases, the volume on crypto exchanges closely correlates with price movements. For example, Coinbase’s total volume in Q1 was over $300 billion as cryptocurrencies surged. Its volume <a href="https://s27.q4cdn.com/397450999/files/doc_financials/2024/q2/Q2-24-Shareholder-Letter.pdf" target="_blank" rel="noopener noreferrer nofollow">dropped</a> to $226 billion in Q2 as prices fell.
Coinbase stock’s retreat has also coincided with the sluggish performance of spot Ethereum and Bitcoin ETFs. Data from <a href="https://sosovalue.com/assets/etf/us-btc-spot" target="_blank" rel="noopener noreferrer nofollow">SoSoValue</a> shows that <a rel="noopener noreferrer nofollow" href="https://crypto.news/spot-bitcoin-etf-outflows-surge-six-fold-ether-etf-outflows-slow-down/">spot Bitcoin ETFs</a> have shed assets over the last seven consecutive days. Ethereum ETFs have also lost assets in six of the last seven weeks. ETF asset flows are important for Coinbase since it is the custodian of choice for most funds.
Meanwhile, Base, the company’s layer-2 network, has also <a href="https://defillama.com/chains" target="_blank" rel="noopener noreferrer nofollow">lost assets</a> in the last seven days. It has over $1.4 billion in assets, making it the sixth-biggest chain in the industry. The volume of coins traded in its DEX platforms fell by 10% to $3.06 billion, bringing its <a href="https://defillama.com/dexs/chains" target="_blank" rel="noopener noreferrer nofollow">cumulative total</a> to over $93 billion.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/spot-btc-etf-outflows-touch-4-month-highs-price-falls-below-57k/"> Spot BTC ETF outflows touch 4-month highs, price falls below $57k </a>
<h2 class="wp-block-heading" id="coinbase-stock-has-formed-risky-patterns">Coinbase stock has formed risky patterns</h2>
<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="3574" height="1982" src="https://crypto.news/app/uploads/2024/09/Coinbase-stock.png" alt="Coinbase stock" class="wp-image-14296501">
 <figcaption class="wp-element-caption">
 Coinbase stock price | chart by <a href="https://www.tradingview.com/symbols/NASDAQ-COIN/" target="_blank" rel="noopener noreferrer nofollow">TradingView</a>
 </figcaption>
</figure>
Technically, Coinbase stock has formed several bearish patterns, signaling more downside. It formed a slanted double-top pattern, with its neckline at $195.40, its lowest swing on May 14. It dropped below this neckline last week.
The stock has also moved below the 50% Fibonacci retracement level and the 200-day Exponential Moving Average. Most notably, it fell below the crucial support level at $162, its lowest swing in August, invalidating the double-bottom pattern that was forming.
Therefore, the path of least resistance is downward, with the next reference level to watch at $137.70, the 61.8% retracement point, and 15% below the Sep. 6 level.
You might also like: <a rel="noopener noreferrer nofollow" href="https://crypto.news/bitcoin-and-altcoins-rise-as-nfp-data-point-to-a-large-rate-cut/"> Bitcoin and altcoins rise as NFP data point to a large rate cut </a>

Coinbase stock forms risky patterns as crypto outlook darkens

Table of Contents

crypto.news

Other articles published on Sep 9, 2024

Nigeria’s EFCC Blocks Bail for Binance Executive Despite Health Concerns: Report

Ether.Fi Partners with Scroll to Launch Crypto-Backed Visa Credit Card

SOL Bulls Gravitate to This New Dog-themed SOL Memecoin, as WIF and Bonk Lag Behind

BNB Chain Launches Cross-Chain Bridge with Celer, deBridge, and Stargate

Bitcoin reaches $55k as exchange net flows plunge

Introducing: Aviator Arcade

Join our free newsletter for daily crypto updates!