Coinbase stock jumped by 12% today, July 1, after the company joined other big names in launching Open USD (OUSD). It also soared after a Glassnode report suggested that investors were accumulating Bitcoin despite ongoing industry weakness. COIN jumped to $163.45, a few points above last month’s low of $139.10.
Coinbase Stock Jumps After OUSD Launch
One main reason the COIN stock price is soaring is that the company is a founding member of Open USD, which aims to take stablecoins mainstream. It joins companies like Visa, Mastercard, and Stripe that handle transactions worth trillions of dollars a year.
The announcement is important because Coinbase is one of the biggest players in the stablecoin industry through its partnership with Circle. It keeps all the interest it earns from holding USDC on its platform, generating over $300 million in quarterly revenue.
Coinbase also made a major deal this week by partnering with Spiko. This partnership will enable the settlement of European mutual funds using stablecoins. The company said:
“Stablecoin-backed treasury management is offering a liquidity tool that lets investors move in and out of T+0 regulated assets, effectively ending the era of trapped capital.”
Coinbase stock also jumped as Bitcoin and other cryptocurrencies jumped on the first day of the month. Bitcoin soared above $60,000, while the market capitalization of all coins rose by over 2.27% in the last 24 hours. Rebounding crypto prices are bullish for Coinbase, as they indicate that its transaction volume will start to recover.
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In a report, Glassnode noted that it was seeing long-term holders and patient buyers begin to absorb supply. The report noted that a broad-based accumulation had emerged across multiple wallet cohorts. It said:
“While the pace of accumulation remains modest relative to the large buying waves seen during prior bull market expansions, it marks a notable shift in behaviour as some of Bitcoin’s most conviction-driven investors once again absorb supply.”
Another sign of accumulation is that the Crypto Fear and Greed Index has moved to the extreme fear zone of 17. In most cases, Bitcoin and other coins normally rebound whenever the gauge moves to this zone.
COIN Stock Technical Analysis
The daily chart also explains why the Coinbase stock price has rebounded in the past few days. This rebound happened after it fell to the crucial support level of $139.10, its lowest level in February this year. It is common for an asset to rebound when it hits a crucial support level.
The risk, however, is that the stock has been forming an inverted cup-and-handle pattern. This rebound is part of the handle section. Also, it remains below the 50-day and 100-day moving averages.
Therefore, the stock will likely resume the downtrend as sellers target the key support level of $139.10. Dropping below that price will indicate additional downside, potentially to $100.
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