Time to believe in crypto

Coinbase is a secure online platform for buying, selling, transferring, and storing digital currencies. The company calls its mission the creation of an open financial system for the world.

What happened?

There are several factors, which point to the bright future of the Coinbase company.

Coinbase earns on commissions

The main source of income for the company is commission fees, which traders pay for the crypto assets trading. In Q2, the crypto market dropped, as a result, the volumes dropped as well as many traders left the market. According to the analysts’ predictions, the revenue is going to fall from $1.79B in Q2 to $1.51B in Q3. 

 

 

Bitcoin trading volumes according to Tradingview

But this situation does not scare investors as the cryptocurrency market has been showing some impressive moves during the past weeks.

News about the first Bitcoin ETF approval by the SEC brought lots of positive into the markets. The next day, the main cryptocurrency broke above its all-time high and reached $67 000. It is an extremely important event for Bitcoin as many social platforms talk about it, and that, in turn, increases the attractiveness of the main cryptocurrency. New users join the market, and the rising volume of transactions means that more operations are carried out every day, which helps crypto platforms to earn more on commissions.

Coinbase makes a partnership with NBA

Coinbase has become an exclusive partner of the National Basketball Association (NBA). According to an NBA press release, Coinbase will advertise on the platforms of the US National Basketball Team, the Women’s National Basketball Association, the NBA G-League, and the NBA 2K League.

Partnerships like this play a special role in the formation of a company and attracting new users. We are confident that this partnership will make a special impact on this platform.

Coinbase makes a partnership with Facebook

Facebook has selected Coinbase as the keeper of securities and financial assets for its pilot Novi, a new digital wallet that allows people to send and receive money abroad instantly, securely, and commission-free.

Participants in the Novi Pilot can purchase Pax Dollar (USDP stands for Digital Dollar) through their account, which Novi will keep on deposit with Coinbase Custody. After that, Novi users will be able to instantly transfer USDP to each other.

Digital wallet holders can also take advantage of the Coinbase Custody insurance program, which includes a $320 million anti-commercial crime policy.

This partnership will add another line in the Coinbase inflow report, as the result earnings growth is expected.

Technical analysis

Daily chart

COINDaily.png

After an IPO in May 2021, Coinbase lost 50% of its price, but with the Bitcoin explosion, the stock has already recovered half of this drop. On the chart, you can see Fibonacci levels, which perfectly act as support and resistance levels. At the moment, the price is testing the 0.5 Fibonacci level.

If it closes today’s trading session above $304, it will be a good buy signal for this stock. In this case, the closest target will be at $330. The next target locates at $360.

If $304 gets broken, the closest support will be at $280, which is the 0.382 Fibonacci level.

This news is republished from another source. You can check the original article here

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