Coinbase stock has experienced significant volatility over the past two weeks, recently touching a crucial support level at $368 that was last seen during the company’s 2021 IPO. Investors are now holding back, waiting for the second-quarter earnings report that could determine the stock’s next major directional movement.
Technical Analysis Points to Potential Upside
COIN has emerged as one of Wall Street’s top-performing crypto stocks this year, joining companies like stablecoin issuer Circle in delivering strong returns. The stock recently pulled back more than 10% from its recent peak of $420, creating what many analysts view as a buying opportunity.
After finding support at the $368 level, COIN has begun reversing course with potential upside toward $476. Economist Donald Dean highlighted that Coinbase stock recently surpassed its all-time highs before retreating to retest the key $368 support zone. Dean identifies the next major target at $476, which corresponds with the Golden Ratio level from a technical analysis perspective.
🚀 Crypto market regulators got busy this week — Senate just dropped a crypto market-structure bill draft and Coinbase is entering earnings zone.
Draft introduces shared SEC/CFTC authority and fresh token issuance rules. Meanwhile, analysts warn Coinbase stock may be ahead of… pic.twitter.com/m5wRvEsRCa
— YesorNO.Labs (@YesorNo_Labs) July 28, 2025
Despite the bullish technical outlook, institutional investors have been taking profits. Cathie Wood’s Ark Invest recently reduced its COIN position as part of broader portfolio rebalancing activities, though this appears to be a strategic adjustment rather than a bearish signal.
Second Quarter Results Could Set New Direction
Coinbase Global is set to announce its second-quarter earnings after market close on Thursday, July 31. The previous quarter brought disappointing results with revenue and adjusted net income falling short of expectations, leading to a 3% stock decline the following trading session.
Management blamed the weaker performance on “softer trading markets,” and analysts suspect this challenging environment may have continued through the second quarter. Current projections from Visible Alpha suggest Coinbase will deliver higher year-over-year revenue growth, but adjusted EBITDA is expected to decline compared to the same period last year.
The company remained active on the acquisition front during Q2, completing several strategic deals. In May, Coinbase purchased options trading platform Deribit in a $2.9 billion cash-and-stock transaction. More recently, the exchange acquired Liquifi, a platform that helps startups manage and distribute tokens. These moves align with Coinbase’s expanded focus on payments, which could benefit from potential regulatory changes like the GENIUS Act.
Broader Market Sentiment Considerations
The mixed technical signals and upcoming earnings release may create additional volatility for crypto markets in the near term. Given the bearish sentiment surrounding the current market environment, investors might adopt a more cautious approach toward risk assets like cryptocurrency stocks.
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