Coinbase has rallied on confirmation that Blackrock is partnering with them to share software between clients.

Overview

Despite crypto markets being down near the yearly lows still, Coinbase has seen a boost in its share price as Blackrock, the largest asset manager in the world, is partnering with them to share software for thier clients. Coinbase also made redundancies in recent days, however, while this is bad for the members of staff who no longer have jobs, for investors of Coinbase, this is somewhat positive as it gives reassurance that the correct steps are being taken to ensure its long-term future. From an investor's point of view, if you can make cutbacks to save money when recession fears are being thrown about, then do it.

Technicals

The technical outlook is difficult to price. Using a Fibonacci retracement. Tough resistance sits at $119.20 (23.6%). Given that Coinbase can break above here then the next form of resistance sits at $167.15 (38.2%). Towards the downside, strong support now sits at $62.00 (where the moving averages sit)

Summary

Comment - This is good for coinbase by all means, but a rise of 20% is a lot. I think in order to keep the price above $100 for now, Crypto prices need to see some relief or rallies to excite investors again and get the transactions flowing. The hope of this partnership might be to get more customers involved at lower prices, but given how high inflation is, it's likely that the focus is going to be on consumer staples and cash preservation. Blackrock has not performed well this year so far, so investors could lose confidence. Given that Tesla has also pulled some of its investment out of Crypto as well, this is definitely going to have an effect on bullish consumer sentiment. That being said, there is a market for Coinabse to exist and do well.