3 Reasons Coinbase Stock Price Soared to 200 EMA

Coinbase stock price is having a good year. The shares jumped by over 21% alone on Thursday and reached a high of $80, the highest level since September 15. It has soared by about 150% from the lowest point in 2022.

Why COIN is soaring

There are three main reasons why the Coinbase stock price is rising. The most important reason is the fact that cryptocurrency prices have jumped. Bitcoin is trading at $23,840, which is slightly below its year-to-date high of near $24,000. 

Similarly, Ethereum jumped to about $1,677 while BNB Coin and XRP have risen to $328 and $0.41. In total, cryptocurrencies have seen their total market cap jump to over $1 trillion. Historically, cryptocurrencies tend to have a close correlation with Coinbase.

Second,  Coinbase stock price has soared because of the Federal Reserve. In a statement on Wednesday, the Fed decided to hike interest rates by 0.25%, which was the smallest increase in months. Before that, the Fed hiked interest rates by 0.50% in December and 0.75% in the previous four meetings.

The dovish rate hike by the Fed explains why the S&P 500 index has jumped to the highest level in five months. Other crypto-related stocks like Silvergate Capital, Marathon Digital, and Bakkt have also surged.

Finally, analysts believe that the company has seen inflows in the network. Data shows that most exchanges have had inflows in the past few days. Binance has seen its inflows rise by $203 million in the past 24 hours. Similarly, OKX, Huobi, and KuCoin have seen inflows jump by over $10 million. As such, there are expectations that Coinbase has also seen inflows.

Coinbase stock price forecast

The daily chart shows that the COIN share price has been in a strong bullish trend in the past few days. It has moved to the 50-day moving average. Notably, the stock has moved to the 200-day moving average. At the same time, it has formed a cup and handle pattern, which is usually a bullish sign. 

Therefore, the stock will likely continue rising as buyers target the key resistance point at $100. The stop-loss of this trade will be at $70.