Coinbase is set to hold its first-quarter earnings conference call on 13 May after it posted stellar earnings for this period. The exchange recently got listed on the Nasdaq 100 index and raked in total revenue of approximately $1.8 billion, with net income of roughly $730 million to $800 million.
On Thursday, Coinbase Global (COIN) announced the inclusion of PayPal (PYPL) as a payment method for its US customer base. This service is to be made available to those who are seeking to purchase cryptocurrencies on Coinbase. The maximum transaction limit is set at $25,000 a day.
This step marks another milestone in regulated cryptocurrency trading. In the United States, trading without a cryptocurrency license is illegal. There has been a push to sanitize the industry through regulation and implementation of KYC policies. Traders in the US and Europe are now more desirous of taking advantage of trading opportunities in regulated exchanges. Recent news of the closures of crypto exchanges in South Korea (V Global), Turkey (Theodex, Vebitcoin) and the recent liquidation of Ice3x in South Africa are reinforcing the shift towards licensed crypto trading venues.
Coinbase is currently trading at 258.82 as it continues to find a suitable floor following its listing.
Technical Levels to Watch
The stock is yet to find a floor as early investors are still selling off their holdings. A bounce at current levels allows bulls to aim for the 282.47 resistance (23 April low and 5 May high). Above this level, additional resistance is seen at 306.97 (27 April high).
On the other hand, a breakdown of the 254.10 support level opens the door towards 237.02 (50% Fibonacci extension from the 14 April high to the 23 April low). Below this level, potential support targets lie at 219.60 and 194.80 (61.8% and 78.6% Fibonacci extension levels, respectively).
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