Coinbase (COIN) Shares Surge 8.59%, Recapturing Crucial Support Level

The cryptocurrency exchange Coinbase’s COIN shares rose by 8.59% yesterday, regaining a crucial level that would determine the course of the price movement on the chart versus the dollar.

The bulls are resurfacing in the cryptocurrency market following an amazing 2023 in terms of activity figures and a somewhat dismal start to 2024.

Now that BTC has increased, COIN can target a new yearly high by the middle of the year.

Coinbase (COIN) Shares Surge 8.59%, Recapturing Crucial Support Level
Source: Blockchain Reporter
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The launch of the first Bitcoin spot ETFs has presented Coinbase with additional obstacles that it must overcome in order to maintain the growth of its stock.

Shares of Coinbase (COIN) increase by 8.59%, opening doors for further cryptocurrency gains.

Coinbase shares (COIN) managed to regain a critical price level for price action reasons yesterday, following a portion of the rise exhibited by Bitcoin, which has increased 9% in the previous week on the cryptocurrency market.

With a 390% boost, the US cryptocurrency exchange’s name generated optimism in 2023 after two incredibly bad post-IPO years.

Source: Trading View

Rather, 2024 for COIN saw a slump in the beginning, with prices falling in January from 175 to 118 dollars, representing a 26% total dump.

But based on yesterday’s demand following the positive candle that was registered on Wednesday, it appears that the San Francisco giant’s activities have started a recovery phase.

Coinbase’s price surged 8.59% in a single day, regaining the $130 cluster and preventing the offer from forming a bearish pattern that would have resulted in a new bottom below $115.

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For the Nasdaq market to close today at $135, it is still imperative to do so in order to raise the likelihood of a positive continuation early next week.

If the cryptocurrency exchange is successful in its mission, it will have opened the way to the next resistance level, which is at 160 dollars. From there, it will combat bearish sales and break through new highs, pushing prices beyond 185 dollars.

Be mindful of potential negative outcomes as well. For example, if the stock makes a fictitious bullish surge and then falls back below $115, the goal will be to find a new yearly low as soon as feasible.

Following the significant rise that began in November, market volumes are somewhat lower, but the RSI indicator has created a double bottom on the chart, which is quite positive and may herald an impending asset increase.

With a market value of $31.71 billion, Coinbase is still very much in the black. The firm is waiting for the publication of its Q4 2023 financial accounts, which might provide COIN even more boost if the sales it generates surpass investors’ expectations.

Leverage Shares claims that the crypto exchange and the problem with Bitcoin spot ETFs

While the COIN activity attempts to match Bitcoin’s lengthy, positive streak, the Coinbase exchange is about to encounter further difficulties in order to preserve its solid financial standing in the cryptocurrency market.

Specifically, as the derivatives provider Leverage Shares pointed out in a report a few days ago, the United States’ approval of the first spot ETFs was a historic development for the cryptocurrency market that might work to Coinbase’s favour as well as its detriment.

Sandeep Rao, an analyst at Leverage Shares, is sure that the exchange will need to work hard to maintain its market share in Bitcoin transactions in order to preserve its solid financial statistics and foster the COIN stock’s growth.

Consequently, the introduction of ETFs in the United States may result in a decrease in Coinbase’s earnings from fees associated with buying cryptocurrencies, given that these investment products have more favourable costs than those offered by the San Francisco-based business.

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