Is the slide in the Coinbase share price likely to end soon?

​Coinbase share price plunge

With Coinbase shares down over 85% from last year’s peak and rivals such as Binance.US announcing it will offer zero-fee trading for Bitcoin as crypto currencies remain under pressure, how much further can the company’s share price slide?

The short answer is much, much further. Simply because a stock is looking ‘cheap’ doesn’t mean that it cannot get cheaper still as traders have found out to their detriment by trying to ‘buy the dip’ over the course of this year in the Coinbase stock which once again is approaching its all-time low at $40.83, according to Google finance.

Short-term, that is to say over several days and up to three weeks, some counter-trend traders managed to make money by buying Coinbase shares, for example around the time when the company released its first quarter (Q1) results in mid-May which widely missed analyst estimates and led to the share price making an all-time low at $40.83.

The subsequent counter trend rally to the late May high, which took it to above the minor psychological $80 mark, made some investors a 100% short-term gain.

Many investors who this year believed in the widely held view that an approximate 80% loss in a technology share’s value can lead to a several hundred percent long-term gain, based on how many of these shares positively evolved in the years which followed the dot.com bubble in the year 2000, are still waiting on their positive returns, though.

One should also not forget that several of the dot.com companies such as Pets.com, Boo.com and Worldcom went bust and that the Nasdaq 100, after having lost 78% of its value by October 2002, wouldn’t reach its previous all-time high until April 2015!