During Monday’s U.S. trading, the Coinbase stock price registered a significant gap down of 6%, opening at $272.98. However, the asset price immediately went to $279 amid a broader market rebound. The surge in buying pressure can also be attributed to Coinbase’s securing VASP approval in the UK market and the formation of a bullish chart pattern.
Key Highlights:
- The formation of a flag pattern, which drives pullback trend mn in Coinbase Stock Price,
- The COIN price is 5% away from challenging the resistance of the three-month-long correction trend.
- Following the recent VASP license in Argentina, Coinbase secured approval from FCA to provide crypto service in the UK.
Coinbase Stock (COIN) Set to Gain from UK Approval and Bitcoin Demand Spike
On February 3rd, Monday, Coinbase secured another milestone towards its global expansion as it gained the United Kingdom’s Financial Conduct Authority (FCA) approval as a registered virtual asset service provider (VASP).
Regulatory approval from a major financial jurisdiction like the UK boosts Coinbase’s credibility, reassuring institutional investors and retail users alike. This could lead to increasing adoption of its service and drive natural demand to Coinbase Stock Price (COIN).
“The United Kingdom is our biggest international market, and this registration represents an important chapter in our international expansion strategy,” Coinbase Stated in its tweet.
According to a recent tweet from CryptoQuant’s analyst, the Coinbase premium gap reached its highest level this year. The sharp indicates rising demand from U.S. investors, which could signal a potential rebound in Bitcoin and altcoin markets.
Typically, the renewed market recovery boosts operations for service providers like Coinbase, boasting value for its native cryptocurrency.
Coinbase Stock Price Consolidates in Bull-Flag Pattern
For the past three months, the Coinbase Stock price has showcased a sluggish movement, struggling to sustain above $350 resistance. In the daily chart, this consolidation resonated within two downsloping trendlines, indicating the formation of the bull-flag pattern.
Theoretically, the pattern offers a temporary pullback for buyers to regain bullish momentum. With an intraday gain of 4.5%, the COIN price trades at $278 while maintaining a market cap of $70.47 billion.
By press time, the asset is less than 5% away from a bullish breakout of the flag pattern. If the pattern holds, the Coinbase price could rally to the $450 level, registering a potential growth of 60%.
Also Read: Kraken Secures EU MiFID License, Expands Offerings in EU
Credit: Source link
