Coinbase Faces Potential Downturn Following Mixed Earnings Report

The post Coinbase Faces Potential Downturn Following Mixed Earnings Report appeared first on Coinpedia Fintech News

Amid the ongoing crypto correction, led by Bitcoin (BTC), Coinbase Global Inc. (NASDAQ: COIN), the largest cryptocurrency exchange in the United States by registered users and daily average traded volume, has been forming a possible reversal pattern. Having risen to a local top around $272 last month, COIN shares have been trapped in a falling trend in the past two weeks.

According to the latest market data, COIN shares have slipped over 20 percent in the past two weeks to trade at about $218 on Friday during the pre-market session. 

From a technical standpoint, COIN shares on the weekly time frame have formed a possible double top coupled with a bearish divergence on the Relative Strength Index (RSI). A further drop in the Bitcoin price could trigger a larger capitulation of COIN shares in the near term.

Coinbase Reports Mixed Q2 Earnings 

On Thursday coinbase coinbase support@coinbase.com Centralised Exchange Global reported its second-quarter earnings results. According to the report, the crypto exchange registered a total revenue of about $1.45 billion versus an estimate of $1.4 billion expected by analysts surveyed by FactSet. 

However, the crypto exchange reported an adjusted EBITDA of about $596 million compared to $607.7 million estimates by Wall Street analysts. 

Investors Worried?

Before Coinbase reported its quarterly results on Thursday, Cathie Wood’s Ark Investment offloaded 69,069 COIN shares, worth about $14.8 million. 

Notably, the company sold COIN shares despite the ongoing adoption of digital assets by institutional investors. Furthermore, Coinbase has played a crucial role in the approval and listing of spot Ether and Bitcoin ETFs in the United States, especially through providing liquidity and custody.

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