Coinbase (COIN) Shares on the Verge of Further Correction After Reporting Mixed Earning Results on Thursday
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.
Recent data shows that COIN shares have dropped more than 20 percent over the last two weeks, trading around $218 in Friday’s pre-market session. This sharp decline highlights the current struggles of the stock.
From a technical perspective, COIN shares are showing a potential double top pattern on the weekly chart, along with a bearish divergence on the Relative Strength Index (RSI). This suggests that if Bitcoin’s price continues to fall, COIN shares might experience even more significant losses soon.
Quarterly Earnings Report: A Mixed Bag
On Thursday coinbase 
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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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The crypto market remains volatile. Only time will tell if these trends will persist.