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COIN, the stock for Coinbase Global, has turned bullish after crucial support presented with the likelihood of cushioning the asset's fall. Notably, COIN had fallen 20% before the buyer congestion level mentioned seemingly restored optimism in the network.
COIN price shows signs of an uptrend underway, rising 5% in the last 24 hours with indications of a continuation. The turnaround comes after the $85.00 support level came into play, providing the jumping-off point for COIN to reach its current market value of $90.75.
The Relative Strength Index (RSI) approaches the 50.0 neutral line, suggesting a retaliative upward movement is on the cards. The Awesome Oscillators (AO) histograms remain in the positive zone, showing large volumes to signify the presence of strong bulls in the market.
Notice the supply zone in the daily chart above, an area populated by sell orders to take profit. If the current buying frenzy in the COIN market continues, the stock could hit this zone of $104.91 to $110.00 before a potential pullback or correction.
Nevertheless, a sustained accumulation with sellers putting their profit-taking appetite in check could breach the supplier congestion zone, rendering it a breaker as COIN price heads further north towards the psychological $104.43 level.
As a precaution, traders should also be aware of the potential for a correction, especially if early profit-taking sets in. Such a turn of events could see the COIN price fall below the immediate support at $84.50 to clear the July 13 gains.
Why COIN price is up
COIN price turned bullish after an optimistic declaration by Coinbase Chief Legal Officer, Paul Grewal, during an earnings call on August 3. Referring to the lawsuit imposed by the US Securities and Exchange Commission (SEC) on June 6, Grewal said:
“With respect to the litigation with the SEC, I want to be very clear; we do think we can win. We expect to win.”
At the time, the financial regulator levied charges against the US-based exchange, alleging that Coinbase had operated as an unregistered security exchange since around 2019. The announcement came a day after the regulator filed a similar charge against Binance, signifying a new focus against powerhouse names in the crypto arena.
The SEC also accused Coinbase of "soliciting potential investors, handling customer funds and assets, and charging transaction-based fees without obtaining the necessary registration." With the exchange envisioning a victory on Friday, its statement to FXStreet remains that "the crypto sector needs legislation that allows fair rules, not litigation."
