Coinbase (COIN) stock has dropped by 9% in the last two days, down from $187 on Wednesday’s market open to close trading at $169 on Thursday, April 9. The drop comes despite US financial regulators supporting US Treasury Secretary Scott Bessent in his call for Congress to pass the CLARITY Act. While this regulatory development is expected to trigger a bullish price prediction for COIN stock, a drop below support could lead to further dips.
SEC and CFTC Chairs Ramp up Support for CLARITY Act
Recently, Bessent urged Congress to pass the CLARITY Act, saying that the bill was a national priority. The Treasury Secretary also urged US legislators to send the bill to President Trump for signing. Such a move would bode well for COIN stock price.
The Chair of the US Securities and Exchange Commission (SEC), Paul Atkins, supported the sentiment, saying that once the CLARITY Act passes, the regulator will immediately implement it.
“It’s time for Congress to future-proof against rogue regulators & advance comprehensive market structure legislation to President Trump’s desk,” Atkins said.
The Chair of the Commodity Futures Trading Commission (CFTC), Michael Selig, also opined that the act will “future-proof digital assets markets.” Selig also said that once the bill passes, it could not be altered by future “rogue” regulators.
Coinbase CEO Brian Armstrong also chimed in, thanking bipartisan senators for working to strengthen the bill. Armstrong had earlier supported White House economists who said that stablecoin yield rewards would not harm banks, as earlier speculated by CLARITY Act critics.
COIN Stock Price Prediction Ahead of key week
COIN stock price has lost 9.6% of its value in the last two days. The drop comes despite Citadel predicting an S&P 500 bull run, driving optimism that Coinbase shares might recover. As reported by Coingape, April 13-20 is a key window for banking commitee markup as a next step for passing CLARITY Act.
The daily chart shows concern about a potential drop after the COIN stock dropped to test support at $167 briefly. While it bounced briefly above this support, it needs to make a close above to prevent a drop to $153.
However, this bearish COIN stock price prediction will be invalidated if the price bounces again after touching support. This will confirm the maturity of a double bottom pattern. If the price moves above the 50-day EMA level at $190, the next target for the price will be $210.
Currently, the RSI shows that the COIN stock price is not out of the woods yet. This indicator sits at 41, a sign that the momentum is bearish. Moreover, the stock is not yet oversold, indicating there may be room for more downside. For a bullish reversal to be confirmed, the RSI needs to move above 50.
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