- COIN price rose 5% at the close of the US session on August 4 before a brief retracement to trade at $90.75.
- The token sits atop the $85.00 support level, which came into play as optimism sprouted in the Coinbase ecosystem.
- This comes as the network’s CLO Paul Grewal anticipated victory in its securities war against the SEC in a post-earnings call on Thursday.
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.
Also Read: US SEC discloses possible conflicts of interest in its cryptocurrency enforcement decisions.
COIN price finds support on the back of Coinbase CLO’s optimism
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.
COIN/USDT 1-day chart
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.”
Cryptocurrency metrics FAQs
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
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