Coinbase Stock Price Plummets Below $200 As Equities Drop On FOMC Day

On Wednesday, Coinbase stock (NASDAQ: COIN) opened at its lowest level since March 1. The shares of the crypto giant plummeted below the critical $200 threshold on NASDAQ amid increased selling pressure in the crypto markets. The fresh 2-month lows in Bitcoin contributed to the bearish market sentiment.

The overall outlook on US equities seems to have flipped bearish amid a weak economy and high inflation. Despite a slow GDP growth in the first quarter of the year, the Federal Reserve is less likely to decrease interest rates in the next two months as the inflation remains well above its 2% target.

A 77-point drop in the S&P 500 index also suggests that investors expect interest rates to remain high for longer than expected.

Coinbase Integrates Bitcoin Lightening Network

In a significant development for the biggest US-based crypto exchange, Coinbase has announced support for Bitcoin Lightening Network. As the name suggests, the integration would allow lightening fast BTC transactions with ultra-low fees. According to the announcement tweet from the CEO, Brian Armstrong, this would enable the next wave of adoption.

NASDAQ: COIN Breaches Major Support Level

After a rejection from the yearly highs of around $283, Coinbase stock has been facing an intense downtrend for the last 4-5 weeks. The shares of the leading digital asset exchange have broken below the $208 support, which is a very critical level, as mentioned in the following chart.

The significance of this support level goes back to May 2021, when the price found support at this level for the first time. However, despite a strong pullback, NASDAQ: COIN has remained 15.76% up since the start of 2024.

Coinbase Stock Price Prediction

Technical analysis of the daily chart reveals the critical support and resistance zones for COIN. As visible in the chart below, an acceptance below the $200 level could propel the price toward the $174.5-$180 zone, which is also the 0.618-0.65 fib retracement zone. Currently, the price is at the 0.5 fib retracement level, which is just a few cents below $200.

However, the recent lower low on the daily chart has broken the bullish market structure, giving a negative outlook to Coinbase stock price prediction. Only a breakout above $208 support could change this outlook, but there is a strong chance that this level will start to act as resistance due to a recent breakdown.