Stay updated with the latest stock market news and insights
Weekly insights + SMS alerts
Circle Internet Group Inc. (CRCL) is taking a little breather on Friday, as investors cash in some chips after a monster rally. The stock jumped 16% on Thursday and has surged 63.21% over the past month. It's the kind of move that makes you want to check your portfolio twice.
Meanwhile, Bitcoin (BTC) is taking a tiny nap, slipping 0.10% over the last 24 hours to $81,180.40. But don't let that small dip fool you; the crypto king's recent climb above $80,000 is a big deal for Circle.
When Bitcoin moves, Circle feels it. Higher crypto prices tend to boost trading activity and, in turn, demand for Circle's USDC stablecoin. Circle backs USDC primarily with cash and short-term U.S. government securities, so a larger reserve base means more reserve income. It's a nice little flywheel effect.
Investors are also keeping an eye on Circle's Arc blockchain, which is set to launch its mainnet on Sept. 16. The network is targeting cross-border payments and institutional tokenization, which could open up new revenue streams.
Even with Friday's pullback, Circle is sitting pretty above its major moving averages. The stock trades 19.7% above its 20-day simple moving average of $82.38 and 37.4% above its 50-day SMA of $71.82. It's also 14.6% above its 100-day SMA and 16.1% above its 200-day SMA. That's a textbook uptrend.
But here's the catch: the stock looks a bit extended after that surge. Momentum is still positive, with the MACD above its signal line and a positive histogram, suggesting buyers are defending pullbacks. However, the 50-day SMA remains below the 200-day SMA following a June "death cross," though the 20-day SMA has since moved above the 50-day, signaling an improving short-term trend.
For traders, the levels to watch are $111 as resistance and $90 as support.
Circle currently carries a Hold consensus rating with an average price forecast of $94.77. But some firms are getting more optimistic. Wolfe Research raised its price target to $65 on Aug. 25 while maintaining an Underperform rating. Susquehanna bumped its target to $92 with a Neutral rating on Aug. 24. And TD Cowen raised its target to $87 with a Buy rating on Aug. 12.
In Friday's premarket, Circle shares were down 1.91% at $101.26, while Nasdaq futures rose 0.10% and S&P 500 futures fell 0.22%.
So, is this a buying opportunity or a sign to take profits? The technicals suggest the uptrend is intact, but the stock may need to consolidate before its next leg up. Keep an eye on those key levels and the Arc launch.
Real-time alerts on price moves, news, and trading opportunities.
Join 20,000+ investors. No spam, ever.
