Coinbase Global (NASDAQ: COIN) extended its decline on Nov. 6 as investors assessed weaker cryptocurrency trading activity and a wave of analyst downgrades. Shares closed near $134.68, falling 1.56% during Friday's session, extending a slide that has now lasted seven consecutive weeks.

The move followed a downgrade by Morgan Stanley, which shifted its rating on the stock from equal-weight to underweight, citing weaker earnings expectations. Analyst Michael Cyprys cut his price target from $258 to $120, a 53.5% reduction. The revised target implies approximately 10.9% downside from Coinbase's Nov. 6 closing price of $134.68, although it reflects Morgan Stanley's valuation forecast rather than a guaranteed decline.

Morgan Stanley Points to Sustained Revenue Pressure

Analysts at Morgan Stanley said the company faces significant headwinds ahead. Cyprys lowered his rating from equal-weight to underweight and slashed his price target from $258 to $120, a level that implies the stock will drop 7.7% from its current price.

In his statement, the analyst said revenue growth will remain under pressure for the foreseeable future. He expects 2027 revenue to come in at $6.4 billion, down 28% from his previous forecast. According to Yahoo Finance, analysts expect the company's revenue to reach $6.5 billion next year, followed by $7.81 billion the following year.

Several other analysts tracking the company have also reduced their targets. Stephen Glagola of Keefe, Bruyette & Woods (KBW) cut his target from $237 to $221, Joseph Vafi of Canaccord Genuity lowered his from $300 to $275, and James Yaro of Goldman Sachs reduced his from $244 to $210. According to MarketBeat, the consensus price target has dropped to $209 from $396 twelve months ago. The distance between Morgan Stanley's $120 target and the $209 consensus illustrates how widely analyst views on Coinbase's revenue trajectory have diverged.

Coinbase Faces Headwinds as Management Engineers a Turnaround

Coinbase, the largest American cryptocurrency exchange, is confronting several major challenges. Because of that scale, its quarterly results are widely watched as a gauge of conditions across the crypto industry. The prolonged crypto winter has produced a substantial decline in trading activity, which has weighed on its transaction volume. The earnings report released this week showed transaction volume dropped to $590 million in the quarter from $599 million in the same period last year. The segment has been shrinking since peaking above $1.55 billion in 2024.

In response, the company is betting that a transition into an “Everything Exchange” will help it grow revenue. The strategy has seen it begin offering a broader range of products, including stocks and commodities, on its platform. Coinbase has also started to roll out additional solutions, such as a prediction marketplace, venturing into one of the fastest-growing segments in the market. How quickly these newer offerings can counterbalance the continued erosion in trading activity is likely to be a focal point in the company's upcoming earnings reports.

Another major headwind is that the stablecoin industry is not expanding as initially expected. Data shows the USDC market capitalization has been in a downward trend, slipping from more than $80 billion earlier in the year to the current $70 billion. This matters for Coinbase because of its partnership with Circle, under which it retains all of the profits it earns from USDC.

The recent hack of Binance has also underscored the security risks cryptocurrency exchanges face. Hackers managed to siphon $6.3 billion worth of coins from Binance, a sign that attackers are becoming more sophisticated. That, in turn, creates a risk that Coinbase could also be breached, an event that could cost it billions of dollars over time.

Coinbase Stock Technical Analysis

Technicals suggest COIN stock remains in a strong downtrend. It has fallen for seven consecutive weeks and is trading at its lowest level since 2024.

The stock has moved below the key support level of $134, which marked its lowest levels in February, June, and July of this year. It has also plunged below the 61.8% Fibonacci retracement level, along with all of its moving averages and the Supertrend indicator.

As a result, the stock will likely continue falling, potentially toward the psychological level of $100. A move above the resistance level of $150 would invalidate the bearish outlook and point to more upside.

This article is for informational purposes only and does not constitute financial or investment advice. Coinbase stock is subject to market volatility, and analyst price targets are not guaranteed. Readers should conduct independent research and consult a qualified financial professional before making investment decisions.

This story was first reported by The Market Periodical.