Selling pressure pushes Circle stock lower in today's trading

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Circle slides 2.59% today to $81.21

Highlights

Circle's USDC product saw increased institutional adoption and new partnerships, driving annual revenue to approximately $2.75 billion.
Despite top-line growth, Circle remains unprofitable as it continues to invest heavily for future expansion, keeping margins negative.
Technicals remain strongly bearish, with selling momentum prevailing and price projected to trade between $60.26 and $83.44 in the near term.

Stock faces continued selling amid revenue gains and persistent losses

Circle reported expanded adoption partnerships and broader institutional engagement for its USDC product. The company generated approximately $2.75 billion in revenue over the past year but remains unprofitable, with negative profit margins as investment in growth continues. This renewed business activity has been accompanied by continued selling pressure in the stock.

Anton Kharitonov, expert at Traders Union, sees Circle under persistent technical and fundamental strain. The asset trades far below key moving averages and lacks signs of reversal. Despite news of institutional partnerships, the company's ongoing losses and heavy selling pressure are concerning. Bearish momentum dominates, and sentiment remains negative across all signals. He warns, "Unless Circle can swiftly reverse its profit trajectory, further downside toward $60.26 cannot be ruled out."

Viktoras Karapetjanc, expert at Traders Union, focuses on the transformative potential of Circle's growing institutional adoption and revenue expansion. He believes the recent partnership announcements create a strong foundation for future growth, even if profitability is not immediate. Market volatility presents multiple entry setups as long as the price holds above its lower volatility band. He states, "I see ample opportunity for a bullish reversal if Circle leverages its USDC momentum — further growth is on the horizon."

Jainam Mehta, market strategist, highlights that Circle is in a technical downtrend but notes the oversold readings on multiple indicators. Mehta sees a tactical scenario where a quick rebound might be possible if short-term sentiment shifts, even as the broader trend stays weak. Any upside would remain capped unless the price reclaims the $97.16 resistance. He suggests, "Traders might watch for a contrarian bounce, but I’d keep stop-losses tight in this environment."

Bearish momentum deepens as technical signals confirm lack of support

Circle is trading well below its 20-day, 50-day, and 200-day simple moving averages (at $97.16, $102.10, and $100.05), which signals persistent downward pressure across short, medium, and long-term trends. The nearest notable resistance from the Ichimoku indicator stands at the Kijun level of $108.85, far above the current price, suggesting the absence of strong dynamic support in the immediate area. Momentum remains negative as the Moving Average Convergence Divergence (MACD) shows a sell signal and the Average Directional Index (ADX) sits at low levels, reflecting weak trend strength. The Relative Strength Index (RSI), Stochastic RSI, and Commodity Channel Index (CCI) all point to bearish or oversold conditions. Bull/Bear Power (BBP) reading of -1.66 indicates sellers are clearly in control on intraday timeframes, with the indicator also in an oversold state. The stock has declined $2.16, or 2.59%, in today’s session after a downside gap of about $1.57 and is currently priced in the upper part of the daily range. Intraday volatility stands at 5.14%. There is continued pressure after the open, consistent with the prevailing bearish momentum across most technical signals.

Earlier, analysts noted that Circle’s recent surge in USDC adoption and new partnerships had sparked a shift toward bullish sentiment and highlighted the importance of maintaining trend support. With current price action marked by persistent downward momentum despite continued business expansion, traders should closely monitor for signs of stabilization within the $60.26 to $83.44 range, as a decisive move outside this corridor could define the next phase of direction.

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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