On Friday, March 21st, the Coinbase stock recorded a slight uptick of 0.27% to close its day trading at $189.8. The resulting short-bodied candle in the daily chart signals no clear dominance from buyers to sellers and prolongs the current consolidation trend. However, the recent talk of Coinbase advancing to acquire Deribit has triggered upside potential for COIN Stock price, with a supporting bullish pattern targeting the $400 mark.
Key Highlights:
- The ongoing discussions about Coinbase acquiring Deribit could trigger demand pressure for COIN stock.
- The Coinbase stock price shows a potential reversal from the support trendline of the wedge pattern.
- A death crossover between the 50-and-200-day exponential moving average could extend consolidation below $200.
Expanding Coinbase’s Footprint in Crypto Derivatives
Coinbase Global Inc., a leading U.S.-based cryptocurrency exchange, is reportedly in advanced discussions to acquire Deribit, the world’s largest trading platform specializing in Bitcoin and Ether options. According to the Bloomberg report, regulators in Dubai have already been notified, as Deribit currently holds a license there which would be transferred upon completion of any potential deal.
Though no final agreement has been confirmed, insiders suggest that the deal could be valued between $4 billion and $5 billion. Coinbase, already a dominant player in the spot trading market, is looking to significantly expand its footprint in the rapidly growing crypto derivatives space.
If completed, this acquisition would mark Coinbase’s most ambitious venture yet into the lucrative crypto derivatives market. This increasing business will open another revenue stream for the exchange potentially driving demand for its stock price.
Coinbase Stock Price Hints Major Reversal In Wedge Pattern
Over the past three months, the Coinbase stock price has witnessed a major correction from $349 to a current trading value of $189.86, registering a 49.6%. This downturn plunged asset prices below key daily EMAs (20, 50, 100, and 200), accelerating the bearish sentiment among market participants.
The COIN price shifted its trajectory sideways above a long-coming support trendline of a wedge pattern at $175. An analysis of the daily chart shows two trendlines as dynamic resistance and support are driving the uptrend in this asset.
The previous reversals from the bottom support trendline led to a bullish rally extending around 140%. If history repeats, the next recovery leap in assets could surge around 110% to challenge resistance at $400.
Conversely, if the COIN price breaks the lower support trendline, the bullish thesis will be invalidated.
Also Read: 3 Reasons Why Ethereum Price May Reclaim $3,000 in April
