Coinbase stock recovered above $150 on Nov. 4 as cryptocurrency prices rebounded following the U.S. midterm elections. Shares of the cryptocurrency exchange closed at $151.50, gaining 4.16% from $145.45 the previous session. However, uncertainty surrounding the CLARITY Act and interest rates complicated the recovery outlook.
The rebound followed a difficult stretch for the exchange. Coinbase closed at $137.83 on Nov. 2, near a broader support region around $135–$139. That area now provides a reference for traders assessing the latest bounce.
Coinbase Stock Price Has Settled at a Key Support Level
The daily chart shows that the COIN stock has come under pressure in the past few weeks as Bitcoin and most altcoins dropped. Bitcoin moved from a high of $87,365 in October to a low of $75,700.
A closer look shows that the stock landed at the crucial support level of $138.88. This was a key level since it was the lowest level on February 12, June 26, and July 12. In most cases, it is possible for assets to rebound whenever they drop to such an important level.
This performance suggests that the stock may rebound in the coming days or weeks, especially if the support level holds. If this happens, the next important target to watch will be at $200, which is about 32% above the current level.
On the other hand, a drop below the key support level of $138 will invalidate the bullish outlook. If this happens, the next important target to watch will be the psychological level of $100.
Coinbase Shares Are Rising as Bitcoin and Altcoins Rally
Coinbase stock is holding steady after the US midterm elections, in which Democrats won by a large margin. Bitcoin rebounded above the key resistance level of $80,000, while Ethereum moved to $2,410. The market capitalization of all coins jumped to $2.68 trillion, up by 2.3% from a day earlier. Similarly, the volume traded in the last 24 hours jumped to over $85 billion.
Coinbase and other cryptocurrency exchanges do well when Bitcoin and other coins are rising because of the surge in activity. This is notable, especially for Coinbase, whose crypto trading volume market share jumped to 10.7% in the third quarter.
The crypto rally pushed Bitcoin and other altcoin ETF inflows higher. Bitcoin ETF inflows rose by $74.5 million on Wednesday, while Ethereum’s rose by $53 million. These inflows are important for Coinbase because it is the biggest custodian.
Coinbase Faces Some Potential Risks Ahead
COIN faces some potential risks ahead. The most important one is that the odds of the CLARITY Act becoming law dropped to just 3% on Polymarket. It is highly unlikely that the Senate will vote for this bill in this term.
Instead, Democrats, who have now won a majority in the House of Representatives and the Senate, will pass a strict standalone bill focused on ethics. They may also pass stricter bills targeting the crypto industry.
The CLARITY Act would have benefited Coinbase by transferring the regulatory powers from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).
Another risk is that the crypto market rally will fade, especially if the Federal Reserve maintains a hawkish tone. Analysts are currently pricing in a rate hike happening in December. The hike will happen because of the elevated inflation in the country.
Most importantly, the company could be exposed to a big hack. Last week, Binance suffered a hack in which hackers siphoned about $6.3 billion worth of coins. As these events become more sophisticated, there is a risk that Coinbase could experience a similar thing.
Coinbase stock is rising after the US midterm elections, a performance that mirrored that of the broader equities market. The Dow Jones Index jumped by over 1,100 points, while the S&P 500 jumped to a record high. That risk-on sentiment helped to push Bitcoin and other altcoins higher.
This article is for informational purposes only and does not constitute investment advice. Cryptocurrency-related equities are volatile, and price scenarios carry substantial uncertainty.
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.
