Crypto News: Coinbase Share Price Hits 18-Month High on Binance Woes

Key Insights:

• SEC plans to pursue fraud charges against Binance impacted the crypto market.
• Coinbase (COIN) share price hits $121 for the first time since May 2022.
• Regulatory scrutiny and crypto-spot ETFs remain the focal points.

Coinbase: A Binance Beneficiary

On Monday, Coinbase (COIN) rallied 3.66%. Following a 5.76% breakout on Friday, Coinbase ended the session at $119.77. Significantly, Coinbase ended the day in positive territory for the fifth time in six sessions. Coinbase is up 55.3% in November vs. a 10.81% gain for the Nasdaq Composite Index.

Market sentiment toward the Coinbase exchange and the migration of Binance users to Coinbase contributed to the breakout month.

The upside comes despite the ongoing SEC v Coinbase case. In June, the SEC charged Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

However, investors are hopeful that Coinbase will win its case. In August, Coinbase filed a Motion to Dismiss (MTD). Coinbase argued that the SEC lacked the statutory authority to regulate crypto exchanges.

With the SEC targeting Binance US, Binance, and CZ for fraud charges, more Binance users could migrate to Coinbase. If Judge Katherine Failla grants the MTD, Coinbase could compete to become the largest exchange. The SEC and Coinbase will present oral arguments relating to the MTD on January 17, 2024.

Ripple Chief Technology Officer Talks Howie

On Sunday, Ripple Chief Technology Officer David Schwartz shared his views on the SEC and its interpretation of the Howie Test. Schwartz had this to say,

“If I buy a baseball card in the hopes of a future profit, I’m hoping for a particular future relationship between supply and demand. At least 50% of that equation is wholly controlled by the promoter.”

The Ripple CTO added,

“Also, art?! If I buy a painting by someone early in their career, you think I’m not speculating that their future works and promotions will increase the value of their early work? That’s exactly what people who buy early works speculate on.”

The comments highlight the regulatory uncertainty that continues to impact the US digital asset space. Recently, the SEC filed charges against Kraken for operating an online crypto trading platform, acting as a broker, dealer, exchange, and clearing agency for crypto asset securities. Additional charges included commingling customer fiat and crypto assets with its own.

The filing listed cryptos the SEC considers securities. These included ADA, ALGO, ATOM, FIL, FLOW, ICP, MANA, MATIC, NEAR, OMG, and SOL. Notably, the SEC excluded XRP from the list.

In November, the SEC v Ripple case entered its final stage, with the SEC and Ripple proceeding with remedies-related discovery. Uncertainty about SEC plans to appeal the Programmatic Sales of XRP ruling continues to leave XRP short of the $0.70 handle.

Technical Analysis

Bitcoin Analysis

BTC held above the 50-day and 200-day EMAs despite three consecutive days in negative territory. The EMAs affirmed bullish price signals.

A BTC move through the $37,600 resistance level would bring the November 24 high of $38,437 into play. A BTC break above $38,437 would support a move toward the $39,000 resistance level.

US lawmaker chatter, regulatory activity, and BTC-spot ETF-related news updates remain the focal points.

A fall through the $37,000 handle would give the bears a run at the $36,400 support level.

The 14-Daily RSI reading of 57.92 suggests a BTC return to $38,000 before entering overbought territory.

Ethereum Analysis

ETH remained above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH return to $2,100 would support a move to the $2,143 resistance level.

However, a break below the $2,021 support level would bring the $1,926 support level into view.

The 14-period Daily RSI at 55.76 suggests an ETH return to $2,100 before entering overbought territory.