Coinbase (COIN) Stock Price Bounces 4.6% as It Announces a PYUSD Stablecoin Partnership With PayPal

During Thursday's U.S. market session, the Coinbase stock price bounced 4.6%, currently trading at $203.76.

Coinbase Global Inc. and PayPal Holdings announced their strategic partnership to scale the adoption, distribution, and utilization of the PayPal USD (PYUSD) stablecoin. The collaboration aims to provide a seamless value for users by making PYUSD more accessible and useful across digital platforms and broader.

“For years, we’ve worked with Coinbase to enable a best-in-class integration to provide a simple, familiar way for PayPal users to fund crypto purchases on Coinbase. Our objectives aligned further as we deployed PYUSD in combination with our payments expertise, enabling greater commerce applications,” said Alex Chriss, President and CEO, PayPal.

What the Upgrade Delivers:

The partnership will see PYUSD become available for no-fee trading on the Coinbase exchange, allowing users to buy, sell, and trade the stablecoin without paying any platform fees.

Moreover, PYUSD will have a 1:1 convertibility with U.S. dollars inside the exchange ecosystem, providing seamless liquidity and usability.

The firms will co-develop PYUSD-based solutions for cross-border payments and digital commerce, leveraging PayPal’s vast network of 430 million consumer and merchant accounts.

Joint teams plan to pilot PYUSD in decentralized finance and on-chain platforms, broadening the stablecoin’s utility and use cases.

How It May Impact COIN Stock Price

The no-fee PYUSD trading could encourage more user transactions on the Coinbase exchange. The increased trading volume will boost revenues from the platform’s other services, such as staking, custody, and inspirational products.

The partnership will significantly enhance Coinbase’s credibility and standing in the cryptocurrency market.

The aforementioned developments and user expansion could positively impact the assets’ intrinsic value and demand pressure.

Coinbase Stock Eyes $250 Rally With This Breakout

Over the past three weeks, the Coinbase stock price recovered from a $142.5 low to today’s closing value of $203.8, registering a 43.25% increase. The daily chart shows this reversal rebound from multiple support of $146, coinciding closely with the 61.8% Fibonacci retracement level.

Theoretically, the FIB level is firm support and assists buyers in recuperating the bullish momentum. The recent price jump above the 20- and 50-day EMA slope signals renewed bullish momentum and a change in market sentiment.

By press time, the Coinbase stock price was less than 2% away from challenging the last swing high resistance of $207. The potential breakout accelerates the bullish momentum and pushes the asset 10.6% to hit the downsloping resistance trendline, which drives the current correction.

A bullish breakout from this resistance is necessary to drive a sustained upswing above $250.