Key Insights
- •Circle stock risks falling as a key technical indicator flashes a sell signal.
- •CRCL stock wavers near $87 as traders digest US jobs data ahead of FOMC meeting.
- •Circle receives a money services provider license in the UAE and plans USDCx stablecoin launch.
- •Baird Capital set a $110 price target for CRCL stock following the Bybit partnership.
Circle stock risks falling despite positive developments, including winning a money services provider license in the UAE and a partnership with Bybit, as per an analyst.
CRCL stock opened 1.60% lower but bounced higher after the US jobs data on Tuesday. The heightened uncertainty ahead of the FOMC meeting has turned investors cautious.
Circle Stock Flashes Sell Signal, Analyst Says
Popular analyst Ali Martinez shared a bearish outlook for Circle stock. He highlighted that the TD Sequential indicator on the daily chart has flashed a sell signal, after correctly predicting the recent local bottom.
He predicted further downside despite Circle Internet’s positive developments to boost USDC adoption. At the time of writing, Circle stock was trading 4% higher at $87.67.
Notably, Circle stock closed 1.94% lower at $83.96 on Monday, as investors booked profits. Year-to-date, Circle share has shed more than 27%, erasing all gains accumulated earlier this year.
The decline follows a wave of heavy selling by investors spooked by persistent volatility and uncertainty in the crypto market. Investors are closely monitoring upcoming macroeconomic cues before making their next moves in CRCL stock.
Circle Internet Receives Money Services Provider License in the UAE
Circle expands its regulatory footprint in the UAE, receiving a Financial Services Permission (FSP) license to operate as a money services provider.
The USDC stablecoin plans to expand regulated payments and settlements for institutions in the UAE.
This milestone follows the DIFC’s recognition of USDC and EURC as the first stablecoins under crypto token rules earlier this year. Circle claimed it reinforced the commitment to transparency, compliance, and responsible innovation.
“We are honored to work with the FSRA in ADGM. Their framework sets a high bar for transparency, risk management, and consumer protection,” said Circle CEO Jeremy Allaire.
In addition, Circle partnered with Aleo blockchain to launch the USDCx stablecoin for banking-level privacy.
It will support use cases including global payroll, critical aid distribution, global e-commerce, P2P payments & remittances, DeFi, and configurable compliance.
Bybit Partnership to Boost USDC Adoption
Circle announced a partnership with Bybit, the world’s second-largest cryptocurrency exchange by trading volume. The crypto firms will work together to expand global access to the USDC stablecoin.
It focuses on liquidity, on/off-ramps, and real-world utility, boosting the stablecoin’s use across the platform used by millions.
The two companies will also launch campaigns and initiatives to increase the utility of USDC. This will reduce Circle’s heavy dependence on Coinbase for USDC circulation.
Today, Baird Capital reiterated its outperform rating and set a $110.00 price target for Circle stock, citing the Bybit partnership.
The crypto stock has posted an almost 10% return over the past week amid rising USDC adoption. The financial services firm highlighted long-term investment return in CRCL stock.
However, analysts warn that stagnant USDC adoption could negatively impact Circle’s stock performance. The company requires global partners to compete with Tether’s dominant market position.
Binance partnered with Circle nearly one year ago, expanding USDC availability for trading, saving, and payments on the world’s largest crypto exchange.
The stablecoin market has grown to $300 billion in total value, with stablecoins becoming increasingly integrated into the global financial system.