The current market is watching Coinbase from two very different angles. On one side, its COIN is trading near one of the most important technical levels seen in years, raising concerns about a larger decline if support gives way.
On the other hand, the company has secured a significant regulatory milestone in Europe that could strengthen its long-term business. The contrast has left investors weighing near-term market pressure against expanding international opportunities.
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COIN Tests Critical Support as Bearish Pattern Deepens
According to market analyst CryptoBullet, Coinbase (COIN) is under pressure as it forms yet another lower high. It is currently probing its long-term support level for the fifth time, thereby making the chances of a breakdown higher.
On a weekly chart, a bearish broadening top formation can be observed, as the price falls from $430-$450 to $150-$160. The support level continues to draw in buyers, although if there is a closure of the price level below the support with increasing volume on a weekly basis, there could be a greater bearish trend.
Source: X
According to the chart, the next decline can move to about $60-$70 if there is an increased amount of selling pressure. The reversal would require COIN to remain above the support.
Coinbase Strengthens Regulated Presence Across the EU
While signals from the technical front continue to remain weak, Coinbase continues to build out its regulated operations outside the US.
Given that Coinbase picked Luxembourg as its headquarters for MiCA regulations, it is now able to provide crypto-related products across the European Union with one set of regulations.
Chief Policy Officer Faryar Shirzad said:
“Luxembourg has established itself as the EU’s leading hub for institutional crypto and tokenization. The country has long taken a thoughtful, innovation-oriented approach to blockchain technology and to digital assets.”
Why MiCA Approval Matters for Coinbase
This is taking place while the European crypto industry is approaching the final stages of the MiCA regulations. OpenPayd recently received MiCA approval in time for the July 1 deadline, which includes stablecoins, custody services, wallets, and transfers.
However, Coinbase is transitioning into the next stage since it already has regulatory approval, and this provides it an advantage as more players join the market.
Nonetheless, investors will keenly observe the COIN price to establish whether it will be able to maintain the support line or the weakening technical structure will force further declines.
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