Gemini's stock price crashed to record lows, continuing a trend that began shortly after the company's initial public offering in September.
summary
- Gemini's stock price collapsed, causing a $2.6 billion wipeout.
- That decline coincided with a decline in Bitcoin treasury companies.
- Technical analysis points out that there is further downside room, with a possibility of $5.
Gemini Space Station, backed by the Winklevoss Twins, has fallen nearly 80% from its all-time high to an all-time low of $9.70. Market capitalization decreased from $3.81 billion to the current $1.14 billion.
Why Gemini's stock price plummeted
Gemini is a top cryptocurrency exchange founded in 2013 by Tyler and Cameron Winklevoss. It went public in September, following other crypto companies such as Circle, Bullish, and Figure.
The stock price initially soared to $45, then began a free fall and is currently at $9.8. This plunge coincided with the recent crypto market crash that affected Bitcoin (BTC) and other altcoins.
It also reflected the free fall of Bitcoin treasury companies like Metaplanet and Michael Saylor Strategy. Gemini is the 26th largest Bitcoin treasury company in the world, holding 4,002 coins worth $372 million.
The performance of Bitcoin and other altcoins over the past few months has caused stock prices to fall. Most of the time, trading volumes on cryptocurrency exchanges decrease during bear markets.
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Unlike Coinbase, most of Gemini's revenue comes from processing transactions. We do not have any large-scale custody, stablecoin, or subscription businesses.
The company also released mixed financial reports. Third-quarter sales jumped to $50.6 million from $24 million a year earlier. However, the net loss jumped from $87 million to $160 million.
The higher loss means the company may elect to raise capital, as it ended the quarter with $487 million in cash and equivalents. It also held $87 million in restricted cash and cash equivalents.
GEMI stock also fell as sentiment towards newly listed companies weakened. After initially soaring, Circle has plummeted, losing more than $40 billion in value. Similarly, bullish stocks are down 65% from their all-time highs. Fellow cryptocurrency trading solutions providers eToro and Webull also fell sharply.
Gemini Space Station Stock Price Analysis
GEMI stock price chart |Source: crypto.news
The 2-hour chart shows that the GEMI stock price has been in a strong downward trend over the past few months. It has formed a descending channel and remains below the 50-period moving average.
Gemini's stock price remains below the supertrend indicator, constantly forming repeating lows and highs. Therefore, the most likely outlook is that the decline continues as the bears have set support at $5. If there is a rebound above the upper limit of the channel, this outlook will be invalidated.
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