Coinbase stock drops to historic low, but Wall Street sees a 100% upside move in the books 

YEREVAN (CoinChapter.com) – Coinbase, the largest crypto exchange in the U.S., saw its stock COIN drop to the historic low of $147 per share on Apr. 18. The stock price dropped nearly 60% from its November high of $368. Additionally, Bitcoin’s (BTC) bearish price action filtered down to crypto-based equities, adding to the COIN’s downside prospects.

Meanwhile, the latest downside move came in the wake of Coinbase losing its bid to force arbitration in a lawsuit over the theft of a user’s crypto worth over $31,000.

Also read: Coinbase takes on Hollywood with a Bored Ape Yacht Club (BAYC) film trilogy.

In detail, a user named Abraham Bielski lost the said amount after giving scammers access to his Coinbase account. He then sought to resolve the exchange’s customer support issue but found the latter “meager and ineffective.” As a result, he pressed charges against Coinbase, and the exchange moved to compel arbitration based on its user agreement.

However, the court found the agreement “unenforceable.”

“[The user agreement] imposes a burdensome and unfair pre-arbitration dispute process on users and sends their complaints, but not Coinbase’s complaints, to binding arbitration,”

read the ruling.

Also read: Coinbase stock down 15% in four days — CEO in trouble with Canadian regulator?

While the lawsuit might have dampened the exchange’s reputation, Wall Street experts predict a bullish year for COIN.

Drop to continue?

Coinbase stock price is dependent on the broader market, which sees the stock in a negative position medium and short term. COIN traded in a wide range of $147 – $207 in the previous month, which some traders might take as too volatile to find a good entry spot.

Furthermore, Dan Dolev, an analyst at retail banking company Mizuho, gave COIN a “neutral rating.” However, after analyzing the exchange’s competition, the expert also concluded that Coinbase might be losing market share.

Also read: Coinbase stock is down 50% since debut, but it’s still the ‘buy’ of the year—here’s why

He further expresses concerns about the company’s retail price pressure from other exchanges, such as FTX, Crypto.com, and Binance. Additionally, COIN traded below its multiple exponential moving averages (20,50,100,200), suggesting further bearish momentum.

However, several Wall Street experts see a 100% price appreciation for COIN in the next 12 months.

COIN to double soon?

In detail, sixteen Wall Street analysts gave investors the collective “BUY” signal, based on the median projection of $296 per share. Notably, the lowest estimation came in at $135, while the highest stood at $500.

Thus, the median price target puts COIN 100% higher than the current value. Thirteen experts voted “buy,” while two stood by a “hold” position, and two advised traders to “sell” their COIN shares. As a result, the consensus outcome is a “moderate-buy” position for Coinbase stock.