To The Moon

As we have seen the Binance, the world’s largest crypto exchange, agreed this past week to fork over $4.3B to settle the U.S. government’s allegations that it violated sanctions and money transmission rules.

Binance founder has pleaded guilty to alleged breaches of anti-money laundering rules and stepped down from the CEO role.

What I foresee this historic settlement mean for Binance’s position at the top of the crypto market, will start seeing more investors moving towards the second largest or smaller exchanges.

We should be seeing $Coinbase Global, Inc.(COIN)$ volume of Bitcoin trading picking up, as they are a listed crypto exchange and their rewards and staking benefits is only one factor.

But as investors, I would like to share what I would think COIN share price would move, as Bitcoin is currently above $37,000 at time of this writing.

COIN Correlation With Bitcoin

As we can see the correlation of COIN is increasing to move towards 0.6, it is catching up with GOLD, what this means would be COIN and Bitcoin could be an asset that people would put in their portfolios to safeguard against any market uncertainity.

No doubt market sentiment is good now, but if you have read my previous article, the loan delinquencies is a concern we need to be aware of.

Technical Indicators - Simple Moving Average (SMA) - 50-day MA period

COIN is currently trading above the 50-day MA period and apparently, if you notice that the Binance does not affect its share price.

In fact it has been above 50-day period and it is trending upwards. I would be looking to load more COIN shares as I feel that there might be some small pullback.

Reasonable price should be around $113 to $114.

Technical Indicators - Average Directional Index (ADX)

ADX has shown a very nice upside move towards 40, once it passed, it will be a strong trend. With +DI above -DI by a wide margin, it looks like there should be some nice upside this week considering that Bitcoin should be trending towards $38,000.

Technical Indicators - Relative Strength Index (RSI)

RSI is in the overbought region which suggest traders and investors are in LONG and buying sentiment. This should continue considering that COIN is in focus now that Binance has just changed their CEO, there should be some customers movement.

I would expect some assets flow move to increase between these 2 exchanges as well.

Summary

Based on the Technicals and Bitcoin is in a good level (above $37,000), I would expect to see some upside trading on COIN today (27 Nov).

But we need to monitor the price action closely as there might be some investors taking profits before re-adjusting their portfolios.

Appreciate if you could share your thoughts in the comment section whether you think COIN would be able to garner some Buying support from traders and investors this week to push its price higher.

@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.