The Coinbase share price surge seen on Monday 28 June follows regulatory approval granted the Coinbase exchange to offer crypto custodial services in Germany. The German financial regulator Bundesanstalt für Finanzdienstleistungsaufsicht, otherwise known as the Federal Financial Supervisory Authority or BaFin, granted the license.
This breakthrough approval grants Coinbase access to the German market, which is the largest in Europe. This also represents a breath of fresh air from the slew of regulatory clampdowns on crypto exchanges in China, Japan, Hong Kong, Canada and the United Kingdom.
This is the second license acquired by Coinbase in the space of one week, as the company had earlier obtained approval from the Japanese Financial Services Agency (JFSA) a few days earlier.
The Coinbase share price action for the day shows the stock attracting strong bids on the back of the news, hitting gains of 9.86% as of writing.
Technical Outlook for Coinbase
Monday’s daily candle breached the 239.29 resistance (20 May and 14 June highs) and now targets a premarket price of 250.75. This is just short of the 6 May low/17 May high of 250.92. If price action breaks this new resistance, the pathway towards the 6 May high of 270.79 opens. Further advance challenges barriers at 282.47 and the 300.00 psychological price resistance.
On the flip side, a rejection at the 250.75 resistance allows for a pullback to cover the gap, with 239.29 serving as the immediate downside target. A further decline targets the 223.29 support, where the lows of 24 May/28 June lie.