Coinbase Stock Faces 18% Downside As Stock Trading Launch Fails To Impress

Key Insights:

• Coinbase (COIN) stock remains weak despite major US launches, showing investors are focused on risk, not headlines.
• Money flow data shows large investors stayed cautious, with limited fresh capital entering Coinbase stock.
• If Coinbase stock breaks below $244, charts point to an 18% drop toward the $198 level.

Coinbase stock fell even after the company announced major new products in the US. The COIN stock dropped over 3% in the past 24 hours and has remained down over the past month.

This reaction surprised many traders because the announcements were large. But the market’s response shows that investors are focused less on headlines and more on risk, money flow, and price levels.

Major US Launches Failed To Move Coinbase Stock

Coinbase announced that US users can now trade futures and perpetual futures directly on the platform. These products make up more than 75% of global crypto trading volume.

The company also launched stock trading in the US, letting users trade stocks and crypto in one app. On the surface, this looks like a strong expansion. But investors reacted with caution.

Max Branzburg, Head of Consumer Products, made the announcement.

The reason is how these products behave in weak markets. Derivatives bring activity, but they also bring leverage. High leverage often increases losses when prices move down.

In past crypto cycles, heavy derivatives trading pushed prices up fast, then caused sharper drops.

Many investors remember this and stayed careful. Money flow data supports this view. Chaikin Money Flow barely moved above zero after the announcement.

This means large investors did not add fresh money. Most of the activity came from smaller traders, not institutions. Another issue is timing.

The crypto market is already weak, and Bitcoin has been under pressure. Launching leverage-heavy products during a fragile market often makes investors defensive instead of confident.

In simple terms, the leading crypto exchange Coinbase added new tools, but big money did not trust the timing.

Competition Adds More Pressure to COIN Stock

The stock trading launch puts Coinbase (COIN) directly against Robinhood. This is a tough comparison.

Robinhood already dominates simple stock trading and attracts retail users easily. Coinbase is entering a space with low fees and heavy competition.

This also changes how investors see Coinbase. It is no longer just a crypto exchange. It is trying to become a full trading platform.

That shift increases costs and pressure. More products mean more rules, more compliance work, and higher operating expenses. Markets usually do not reward expansion when a stock is already trending down.

Coinbase stock has been in a clear downtrend since early October. Another concern is public perception.

Derivatives are often blamed when crypto prices fall fast. If volatility increases, Coinbase could face criticism even if trading volume rises. New features alone are not enough to reverse that trend.

Coinbase (COIN) Stock Price Levels Show a Clear 18% Downside Risk

The chart explains why traders stayed cautious. Coinbase stock is trading near a key support level around $244.

This level has held so far, but it is under pressure. If $244 breaks, the next strong support for the COIN stock sits near $198.

That move would mean an 18% drop from current prices. There is also a level that matters on the upside.

For Coinbase stock to show strength, it needs to move above $284 and stay there.

Until that happens, the trend remains weak. This is why the stock fell even after big US announcements. Traders are watching price behavior and money flow, not just news. As long as the crypto market stays unstable and leverage stays high, Coinbase stock may continue to struggle.