Coinbase Wins All-Trading License in Singapore — What’s It Doing to COIN Stock?

Key Takeaways:

• Coinbase acquired a full payments license to operate in Singapore.
• COIN price fell, likely due to profit booking.
• The firm’s shares are moving in a bearish pattern.

NEW DELHI (CoinChapter.com) — Coinbase (NASDAQ: COIN) continued its expansion plans despite the exchange’s ongoing legal battle with the US Securities and Exchange Commission.

The exchange announced that it obtained the Major Payment Institution (MPI) license from the Monetary Authority of Singapore (MAS). The license comes after Coinbase acquired In-Principle Approval (IPA) from the city-state’s regulatory body in Oct. 2022.

MAS’s license will allow Coinbase to offer crypto services to individuals and institutions in Singapore. The region has emerged as a hotspot for crypto activity, with over 25% of responders to a Coinbase survey claiming crypto as the future of finance.

Moreover, Singapore has more than 700 Web 3.0 firms, making it a “vital market” for the exchange, Coinbase said in its announcement. Additionally, Coinbase has released several products tailor-made for the region to establish itself in Singapore.

The Singapore license is the latest step in Coinbase’s international expansion plans. In a Sept. 28 post, the exchange shared that it had secured regulatory approval from the Bermuda Monetary Authority to offer perpetual futures services for “non-US retail customers.“

The legal battle with the SEC has likely led the exchange to expand its business internationally, including the Coinbase International Exchange launch in May 2023. The regulatory body sued Coinbase for operating as an unregistered securities exchange in June 2023.

COIN Price Forms Bearish Pattern

Meanwhile, the COIN price has formed a bearish technical pattern called the ‘Rising Wedge.’

Two upwards-sloping and converging trendlines, joining higher highs and higher lows, form the said structure. The converging trendlines increase the asset’s value while lowering the price swing.

Declining trading volumes often accompany a breakdown below the pattern.

The price target of the pattern is equal to the height of the back of the wedge. If Coinbase shares price breaks below the support level of the pattern, COIN price could theoretically drop to reach the calculated price target of $25.

Coinbase Stock Price Faces Bearish Pressure

COIN price started rallying during the London Session on Oct. 2. However, bears started booking profits near the 50-day EMA (purple wave), forcing the Coinbase stock price to drop over 6% to reach a daily low near $75.

On the other hand, COIN bulls aggressively defend the 100-day EMA (blue wave) and 200-day EMA (green wave) dynamic support confluence. If Coinbase stocks price needles below the EMA trendlines, COIN price could drop 7.2% to the support near $70.5.

Moreover, breaching below the immediate static support could force the COIN price to test the support near $61.5 before recovering.

Conversely, if bulls start a rally, Coinbase stock prices could rise to the resistance near $84.8. Moreover, breaking and consolidating above the immediate resistance might help COIN price target the resistance near $95.7.

The RSI for COIN remained neutral, with a score of 47.14 on the daily charts.