Coinbase stock extended its decline on Nov. 6 as investors assessed weaker cryptocurrency trading activity and analyst downgrades. Shares closed near $134.68, falling 1.56% during Friday’s session.
Morgan Stanley downgraded Coinbase stock from equal-weight to underweight, citing weaker earnings expectations. Analyst Michael Cyprys reduced his price target from $258 to $120, representing a 53.5% reduction.
The revised target implies approximately 10.9% downside from Coinbase’s Nov. 6 closing price of $134.68. However, the target reflects Morgan Stanley’s valuation forecast rather than a guaranteed decline.
Morgan Stanley Has Downgraded Coinbase Stock
Analysts at Morgan Stanley have downgraded Coinbase stock, noting that the company faces some headwinds ahead. Michael Cyprys slashed his rating from equal-weight to underweight and then slashed his price target from $258 to $120. That rating suggests that the stock will drop by 7.7% from the current level.
In his statement, the analyst said that the revenue growth will remain under pressure in the foreseeable future. He expects the 2027 revenue to come in at $6.4 billion, down by 28% from his previous target. According to Yahoo Finance, analysts expect that the company’s revenue will come in at $6.5 billion next year, followed by $7.81 billion the following year.
Other analysts tracking the company have slashed their targets. Stephen Glagola of Keefe, Bruyette & Woods (KBW) cut the target from $237 to $221. Joseph Vafi of Canaccord Genuity slashed the target from $300 to $275, while James Yaro of Goldman Sachs reduced it from $244 to $210. According to MarketBeat, the consensus target dropped to $209 from $396 12 months ago.
Coinbase is Facing Headwinds as Management Engineers Turnaround
Coinbase, the biggest American crypto exchange, is facing some major challenges. The prolonged crypto winter has led to a substantial decline in volume, which has affected its transaction volume.
The earnings report released this week showed that its transaction volume dropped to $590 million in the quarter from $599 million in the same period last year. This segment has been declining after peaking at over $1.55 billion in 2024.
The company is now hoping that a transition into an “Everything Exchange” will help it grow its revenue. This approach has seen it start offering more products, including stocks and commodities on its platform.
Coinbase has also started to offer other solutions, including a prediction marketplace, venturing into one of the fastest-growing segments in the market.
The other main headwind it is facing is that the stablecoin industry is not growing as initially expected. Indeed, data shows that the USDC market capitalization has been in a downward trend from over $80 billion earlier this year to the current $70 billion. This is important because Coinbase has a partnership with Circle, in which it keeps all the profits it earns from its USDC.
The recent Binance hack has exposed the risk that cryptocurrency exchanges are facing. Hackers managed to siphon $6.3 billion worth of coins from Binance, a sign that hackers are becoming more sophisticated. As a result, there is a risk that Coinbase will also be hacked, a move that will cost it billions of dollars over time.
Coinbase Share Price Technical Analysis
Technicals suggest that the COIN stock continues its strong downward trend. It has dropped in the last seven consecutive weeks, reaching its lowest level since 2024.
The stock has moved below the key support level of $134, its lowest level in February, June, and July this year. It has also plunged below the 61.8% Fibonacci Retracement level.
Coinbase has also moved below all moving averages and the Supertrend indicator. Therefore, the stock will likely continue falling, potentially to the psychological level of $100. A move above the resistance level of $150 will invalidate the bearish outlook and point to more upside.
This article is for informational purposes only and does not constitute financial or investment advice. Coinbase stock is subject to market volatility, and analyst price targets are not guaranteed. Readers should conduct independent research and consult a qualified financial professional before making investment decisions.
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.
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Disclaimer. Informational only, not financial advice. Crypto, forex and stocks are volatile, high-risk assets — always do your own research and consult a qualified adviser.
