Amid concerns about an insider share dump, Coinbase's ($COIN) stock price is surging uncontrollably on a historic downturn. According to Yahoo Finance, the stock of Coinbase Global, Inc., one of the top cryptocurrency companies, closed on Friday at $124.75, up 0.33%. The recent 2.5% decline — pre-market to $121.71 on Monday — is expected to intensify if the pressure remaining above $COIN.

Coinbase ($COIN) Bleeds As Insiders Sell

Coinbase stock price has performed extremely well over the last few months, increasing from $70 in late October to $186 in early January.

The rally can directly be attributed to the hype that preceded the approval of the spot Bitcoin ETFs in the US. Although Bitcoin and the crypto market corrected following the green light, the ETFs have continued to perform well, with at least $10 billion in volume coming in over the first 24 hours.

Coinbase is a significant player in the ETF market, providing custody services to several ETF operators like BlackRock and Grayscale.

This factor could make $COIN a big contender in the ETF market and, in turn, contribute immensely to its growth and position among other crypto-based stocks like MicroStrategy Incorporated (MSTR).

This implies that Coinbase will shortly start collecting fees from Bitcoin ETF operators to fund the custody service. With its connections to companies like as State Street and Bank of New Mellon, Coinbase would be a key player in the expansion of Bitcoin ETFs.

There have been tidings of insider stock sales in the interim. Experts predict that this pattern will continue after the sharp price hike in Q4 2023. In the last three months alone, at least 45 transactions have been documented; in only six months, that number jumps to 54.

A total of 2.1 million shares, valued at $262 million at the current market rate, were sold by $COIN stakeholders in a single year. Among the prominent figures on the list of insider sales are CEO Brian Armstrong, COO Emilie Choi, and CLO Paul Grewal.

While insider sales of stock are generally regarded as detrimental to the shares, there are several situations where they are justified. For example, following a significant price hike.

Forecast for Coinbase ($COIN) Prices

Monday's battle to halt the decline in Coinbase stock would be supported at $116 by the 200 Exponential Moving Average (EMA), which is purple. The bulls' advantage would be further increased if a daily close above $120.

The least resistance could, however, continue to go downward in the event of a strong sell signal from the Moving Average Convergence Divergence (MACD) indicator.

The likelihood of an instantaneous trend reversal cannot be completely ruled out by traders, particularly as the MACD is likely to flash a buy signal in a brief period of time, as seen on the four-hour chart.

The 20 EMA (blue) at $137, the 50 EMA (red) at $143, and the December peak of $COIN at $186 are important upward objectives. Before the next recovery trend starts, a sell-off to $100 could be sparked by a decline below the 200 EMA.