Circle shares dip amid rising selling pressure

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Circle slides 6.48% today to $105.68

Highlights

Circle achieved a 28% annual growth in USDC circulation and a 263% increase in on-chain transaction volume to $21.5 trillion, reflecting strong adoption momentum.
New partnerships with Nium and Kyriba broaden Circle’s USDC use cases, while product development includes post-quantum security upgrades and the forthcoming Arc blockchain launch.
Technical signals remain mixed, with price consolidation between $102.47 and $110.50 likely as strong momentum competes with persistent selling pressure.

Sector adoption growth and partnerships as stock faces ongoing pressure

Circle reported a 28% year-over-year increase in USDC circulation and a 263% rise in on-chain transaction volume to $21.5 trillion, attributed to growing adoption. New partnerships with Nium and Kyriba were established to expand use cases for USDC and support further development. The company continues to progress on stablecoin products, including post-quantum security upgrades and the planned launch of its Arc blockchain. Circle’s stock was previously noted for achieving a 38% increase related to its role in the sector, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, sees Circle’s technical signals as conflicted, with price dropping sharply and sitting below its 20-day average. He notes the apparent buyer dominance on intraday indicators but warns this is paired with recent selling pressure and a downside gap. The strong year-over-year growth in USDC usage adds a positive fundamental layer, yet Kharitonov questions whether the optimism is priced in given erratic momentum. He remains skeptical about further immediate upside, especially as volatility picks up and support is tested. "In my view, caution is warranted since technical and fundamental optimism do not outweigh persistent selling and a fragile trend."

Viktoras Karapetjanc, expert at Traders Union, believes Circle’s strong growth in USDC circulation and surging on-chain transaction volumes highlight robust adoption. He notes that new partnerships and upcoming blockchain innovations reinforce the company’s leading position in digital finance. Despite recent price weakness, Karapetjanc emphasizes Circle’s underlying bullish structure, with the stock holding above its 200-day average. He expects further opportunities for growth as stablecoin markets expand. "I see current selling as a setup for renewed gains, with Circle poised for upward momentum as adoption accelerates."

Conflicted momentum as strong buy signals meet fresh downside gap

Momentum readings are mixed: the Moving Average Convergence Divergence (MACD) on the daily chart shows a strong buy signal, while the Average Directional Index (ADX) indicates a weak but rising trend. The Relative Strength Index (RSI) at 52.43 suggests neither overbought nor oversold conditions, echoed by the Stochastic RSI and Commodity Channel Index (CCI), both of which are neutral. Bull/Bear Power (BBP) shows buyer dominance but with an overbought reading, hinting that intraday buying may be stretched. Daily performance is negative with the stock down $7.32 or 6.48%, following a clear downside gap of about $6.77. Circle currently sits around the middle of its daily range, and intraday volatility stands at 3.08%. Persistent selling pressure after the open aligns with overbought intraday BBP, but the overall picture is conflicted as strong momentum signals contrast with the recent downside move.

Earlier, analysts noted that Circle was exhibiting mixed technical signals with unresolved momentum and volatility, highlighting the need for a decisive trend direction. The current setup introduces additional fundamental strength amid ongoing consolidation, making price action around the $102.47 support and $110.50 resistance critical for traders assessing the next directional move.

Source of Data: CRCL Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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