Circle Internet Financial Ltd. (NYSE: CRCL), the fintech powerhouse behind the USDC stablecoin, has hit a rough patch. On Tuesday, June 25, its stock plummeted 15.49%, closing at $222.65 – down from Monday’s close of $263.50. This sharp decline erased nearly $5 billion from its market capitalization, leaving it at $49.1 billion.
The stock opened at $250.42 – a key support level – before sinking to an intraday low of $217.58. After hours, it dipped further to $218.14, shedding another 2.03% ($4.51). Despite this tumble, CRCL remains up an impressive 42.40% over the past five days, though the recent drop has investors questioning whether the worst is yet to come.
Also Read – 4 Reasons Circle (CRCL) Stock is Crashing – Will It Hit $200 Next?
Cathie Wood’s ARK Invest Shakes Up the Market
The financial world buzzed with news of Cathie Wood’s ARK Invest, a prominent ETF provider, unloading a significant chunk of CRCL stock. Instead, Wood redirected capital into Robinhood (HOOD) and Coinbase (COIN) shares – a move that’s amplified the bearish sentiment around CRCL. ARK’s decisions often sway market trends, and this sell-off has contributed to the stock’s downward spiral.
The timing is notable: Monday saw CRCL surge 25% to an intraday peak of $298.99 on news of a partnership with Fiserv, only to crash 11.9% from that high. Tuesday’s 17.89% drop from an intraday peak of $265 to the low of $217.58 underscores the volatility gripping the stock.
Technical Breakdown: Bearish Signals Dominate
The charts tell a grim story. Tuesday’s close featured a bearish marubozu candlestick – a sign of unrelenting selling pressure. The stock, now at $222.50, has breached its critical $245-250 support zone and retraced to $230, aligning with the 9EMA on the hourly timeframe.
On the daily chart, the 9EMA support sits at $186.55, near a broader support range of $185-205, based on simple price action analysis. Meanwhile, the $243-250 zone has flipped into a major resistance, with $233-238 acting as a minor hurdle below it.
The Relative Strength Index (RSI) stands at 40.77 – not yet in oversold territory (below 30) – suggesting room for further downside. Analysts see CRCL potentially filling a gap below $206 and testing the $200 level.
For now, the stock appears poised to trade range-bound between $200 and $250, reflecting a cooling-off period after its meteoric 750% rise from an IPO price of $31. That overstretched rally, paired with a high P/E ratio compared to industry peers, had long hinted at an overdue correction.
Key Technical Levels:
- Support: $185-205 (daily 9EMA at $186.55), $200 zone
- Resistance: $233-238 (minor), $243-250 (major)
- RSI: 40.77 (neutral, not oversold)
CRCL Financials: A Silver Lining Amid the Crash?
Despite the stock’s recent decline, Circle’s fundamentals remain strong. For the fiscal year, the company reported a net income of $155.67 million and revenue of $1.68 billion, with 110.07 million shares outstanding (Source: TradingView).
As a leader in the stablecoin space, Circle’s business model is closely tied to the growing adoption of digital assets – a trend that could support its long-term outlook. However, the recent market cap contraction and technical headwinds continue to overshadow these strengths in the short term.
Also Read – CRCL’s USDC & FI’s FIUSD – The Stablecoin Business Model Everyone Should Understand
What’s Next for CRCL?
CRCL’s $5 billion market cap wipeout is a stark reminder of the volatility that follows high-flying stocks. Cathie Wood’s pivot to Robinhood and Coinbase has fueled the sell-off, while technical indicators point to a possible drop to $200. Profit-taking after a 750% post-IPO run was inevitable, but the depth of this correction – coupled with a lofty P/E ratio – raises questions about near-term stability. Still, Circle’s strong financials and its foothold in the stablecoin market suggest resilience over the long haul.
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Will it get worse? The $200 level looms as a critical test. If it holds, CRCL could stabilize within the $200-250 range. A break below, however, might signal deeper trouble. Investors should keep a close eye on volume, RSI, and any fresh catalysts to gauge the stock’s next chapter. For now, caution is the name of the game.
This article is for informational purposes only and should not be considered financial advice. Investing in stocks, cryptocurrencies, or other assets involves risks, including the potential loss of principal. Always conduct your own research or consult a qualified financial advisor before making investment decisions. The author and publisher are not responsible for any financial losses incurred from actions based on this article. While efforts have been made to ensure accuracy, economic data and market conditions can change rapidly. The author and publisher do not guarantee the completeness or accuracy of the information and are not liable for any errors or omissions. Always verify data with primary sources before making decisions.
Dawson Blake is a financial markets expert with over 10 years of experience, focusing mainly on stock market news and price movements. He aims to become a top-tier authority in curating stock news content that readers can trust as their go-to source for market information. Dawson enjoys breaking down market activity, company updates, and daily trends to help investors stay informed and make smarter financial decisions. His writing is simple, clear, and designed to make the stock market easy to follow for everyone.