- Gemini stock fell in morning trade after Wall Street firms lowered price targets, citing weaker trading activity and declining transaction volumes.
- The stock traded near multi-month lows, with technical indicators showing continued selling pressure.
- Shareholders filed a proposed class action lawsuit against Gemini and its co-founders, alleging misleading statements in connection with its initial public offering.
Shares of Gemini Space Station (GEMI) moved lower on Monday morning after two Wall Street firms reduced their price targets, citing a poorer outlook for trading activity on the crypto exchange.
Mizuho maintained an ‘Outperform’ rating but lowered its price target from $26 to $12, citing potential negative effects on short-term revenue growth from declining transaction volumes and softer asset prices. The company also stated that the weakness in Gemini's core trading segment is offset by its strengths in its card and services businesses.
While maintaining a ‘Buy’ rating, Needham analyst John Todaro also reduced his price target for the stock from $10 to $8.
Gemini stock was down over 4% on Monday morning at market open. On Stocktwits, retail sentiment around GEMI remained in ‘bearish’ territory, with chatter at ‘high’ levels over the past day.
Source: By Stocktwits on TradingView.
However, with a 14-day Relative Strength Index (RSI) near 37, shares were trading close to multi-month lows, reflecting a persistent downtrend and continued selling pressure. While not yet in oversold territory, momentum remained weak. At the same time, a sharply negative weekly momentum reading suggests that selling pressure has recently intensified. GEMI’s stock has fallen nearly 79% from its IPO price of $28 per share.
Shareholders Sue Amid Broader Decline
A recent lawsuit added to the string of challenges GEMI has faced. On Friday, shareholders of Gemini filed a proposed class action lawsuit against the company and its co-founders, Cameron and Tyler Winklevoss, in Manhattan federal court, alleging that the company made false and misleading statements in marketing documents for its initial public offering in September last year.
The lawsuit alleged that Gemini had overstated the viability of its crypto platform and its ability to grow internationally, while failing to disclose that the company was poised for an "abrupt corporate pivot" to focus on prediction markets. The complaint sought damages for shareholders between September 12, 2025, and February 17, 2026.
Read also: Fidelity Calls On SEC To Bring Crypto Trading Into Traditional Brokerage Accounts
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