How To Trade COIN’s Downtrend

Participation across more speculative pockets of the market and crypto-linked names has continued to erode, with rallies fading quickly and sellers maintaining control of the trend. Coinbase (COIN) has been a clear reflection of that pressure, rolling over after a mid-2025 peak and establishing a persistent sequence of lower highs and lower lows since October. The more telling shift occurred in November, when its 1-month price closed below the 10-month moving average, triggering a PowerTrend ‘Sell’ signal that remains firmly in place today. Since then, each bounce has been met with profit taking, reinforcing a tape that continues to favor downside continuation over sustained recovery.

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From a trade construction standpoint, the focus shifts toward defined-risk bearish strategies that can take advantage of that ongoing pressure without requiring perfect timing. One approach would be using an in-the-money put debit spread, allowing the position to benefit not only from continued downside but also from time decay working in its favor. Structurally, this type of setup can still perform even if the stock moves sideways or drifts modestly higher within a controlled range. At current pricing, there are setups where the payoff profile could approach a 50%+ return under those conditions, though outcomes will always depend on how price evolves into expiration.

Setups like this tend to emerge when trends are well-defined and participation is selective. Inside our Weekly Stock and Option Alert Newsletter, we consistently map out opportunities using this same disciplined, rules-based framework. For those looking to stay aligned with the tape and refine how these structures are applied, access is currently available at a discounted annual rate. Get access to these trade setups today!

Wishing You the Best in Investing Success,