Crypto stocks, including Coinbase (COIN), Strategy (MSTR), and Circle (CRCL), have posted massive gains this week amid a rally across US stock prices that has pushed the S&P 500 to a new all-time high above $7,000. This rally comes amid a push for the US and Iran to have a second round of talks after the first round of negotiations failed. As this happens, how high will the price of COIN, MSTR, and CRCL rally? Let’s explore.
S&P 500 Soars to Record High on Calls For Fresh Iran Peace Talks
Data from Google Finance shows that the S&P 500 has surpassed 7,000 points for the first time in history. It closed trading on Wednesday, April 15, at 7,022 points. This came as the price of stocks, including those not on the index like COIN, MSTR, and CRCL, reached multi-week highs.
The 11% surge recorded by the S&P 500 in the last 12 trading days means that the market cap has increased by more than $6 trillion. This is amid speculation that the geopolitical tensions that have been driving investors away from risk assets are now easing.
A recent report by CNN stated that officials from Iran and Pakistan will meet on April 16 to discuss communications from the US. Additionally, there is a possibility for new talks to be held in Pakistan. On a post on Truth Social, President Trump also said the leaders of Israel and Lebanon will meet to discuss a ceasefire.
As these tensions ease, investors who had previously abandoned stocks in fear of further losses will start coming back. As a result, COIN, MSTR, and CRCL are now recording a massive surge in price.
COIN Stock Hits 3-Week High as Sentiment Turns Bullish
COIN stock price increased by 6.23% yesterday and closed trading at $195, its highest level since March 24. This surge has been driven by an increase in buying activity, as seen in the rise of the RSI to 59. This shows that the momentum is now bullish, and the COIN share price could extend the rally to above $200.
At the same time, the SMA index confirms this bullish outlook after the price moved above the 50-day SMA. This crossover shows that the upward trend will likely continue as the short-term momentum favors bullish traders. Besides easing tensions, COIN is also rising amid a push for crypto regulatory clarity.
As COIN stock moves higher, the first test will be the psychological resistance level at $200. If a strong close above this level happens, COIN could then move towards $213 and eventually $238 if the bullish sentiment remains strong.
MSTR Price Outlook as Bulls Target Another 20% Rally
MSTR stock price has made a strong rebound for the last two weeks, and this has led to the formation of a rounding bottom pattern on the four-hour chart. This pattern usually signals the beginning of a strong rally if bulls can overcome the resistance that currently lies at $139.75.
If MSTR can break this resistance level as the price of COIN and other crypto stocks continue trending upwards, it might register a 20% rally. This is equivalent to the depth of the rounding bottom. A 20% surge from the $139.75 resistance will push the price of MSTR shares to $172.
The CMF shows an increase in buying activity, which, if it persists because of the easing tensions in the US-Iran war, will drive the rally to $172.
CRCL Stock Price Tests Support Before Breakout Rally
CRCL stock price did not record as many gains as COIN or MSTR on April 15. The stock surged by 0.03% to close trading at $105.52. However, the performance could be a brief cool-off following a 13.39% increase in the last five trading days.
Circle has formed solid support at $85, with its move to test this level twice creating a double bottom pattern. It broke the neckline resistance of this pattern at $101.03 earlier this week, and it may drop to test whether it is a strong support level. This level may hold as Circle eyes the release of a Yuan-backed stablecoin.
If the support at $101.03 holds, CRCL may surge to $120. Currently, the momentum is bullish because of the RSI reading of 60, making it more likely that this gain will happen.