{"id":5175,"date":"2026-06-17T15:15:41","date_gmt":"2026-06-17T15:15:41","guid":{"rendered":"https:\/\/tradertideinsights.com\/?p=5175"},"modified":"2026-06-17T15:15:41","modified_gmt":"2026-06-17T15:15:41","slug":"circle-stock-at-risk-as-it-faces-a-major-triple-whammy-of-headwinds","status":"publish","type":"post","link":"https:\/\/tradertideinsights.com\/?p=5175","title":{"rendered":"Circle stock at risk as it faces a major triple whammy of headwinds"},"content":{"rendered":"
<\/div>\n

Circle Internet Group stock price has pulled back in the past few days, moving from a high of $138.5 in May to the current $79.72. This CRCL pullback may continue in the near future as it faces a triple-whammy of weak technicals, falling USDC supply, and US government yields. <\/p>\n

Circle stock price has formed a double-top pattern<\/h2>\n

Technicals suggest that the CRCL stock has retreated in the past few weeks, moving from a high of $138.50 in May to $79.7, its lowest level since March 2nd this year. That is a sign that it has moved to a technical bear market.<\/p>\n

Most importantly, the stock has formed a double-top pattern whose height is $51 ($135 minus $84). Subtracting the height pattern\u2019s height from the neckline of $79, gives it a target of $28. If this happens, the stock will have dropped by 90% from its all-time high. This view will be confirmed if it drops below the all-time low of $50.<\/p>\n

Other technicals are bearish on the stock. For example, it remains below the 50-day Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has fallen to 37. <\/p>\n

The stock is also slowly forming a bearish flag pattern, which is made up of a vertical line and a small horizontal channel. <\/p>\n

<\/figure>\n

CRCL stock chart | Source: TradingView<\/em><\/p>\n

USDC supply is falling<\/h2>\n

The other main risk that the company is facing is that USDC, its main asset, has dropped in the past few weeks. Data compiled by CoinMarketCap<\/a> shows that the supply of the USDC token has dropped from $79.3 billion in March to $74 billion today. Artemis data places the number at $76 billion.<\/p>\n

The falling USDC supply is notable because of Circle\u2019s business model. Like other stablecoin issuers, the company makes its money by investing the funds in US government bonds. It is a model similar to how banks make money, with the only difference being that it is not allowed to invest in other assets like commercial bonds. <\/p>\n

This business model means that the company is not benefiting from the rising usage. Artemis data shows that the volume jumped by 15% in the last 30 days to over $2.6 trillion, while the number of active addresses rose to 16 million.<\/p>\n

Falling US government bond yields<\/h2>\n

The ongoing USDC supply has also coincided with a continued decline in U.S. government bond yields, alongside a retreat in crude oil and natural gas prices. Data shows that the two-year yield has fallen from 4.20% earlier this month to 4.05%. The five-year yield has dropped to 4.155% from its year-to-date high of 4.35%. It has also formed a double-top pattern, suggesting further downside potential.<\/p>\n

US bond yields have eased recently after the US inked a Memorandum of Understanding (MoU) with Iran. This MoU will lead to the reopening of the Strait of Hormuz, which explains why crude oil prices<\/a> have pulled back in the past few days. As such, there is a possibility that the Fed will not have the urgency to hike interest rates.<\/p>\n

As such, Circle Internet Group is facing the double-whammy of falling assets and interest rates, which will affect its revenue growth. <\/p>\n

The company is also facing another challenge: Arc. Arc, its layer-1 network, may face the challenges that have been faced by other chains like Ethereum, Solana, and BNB Chain. Most of these chains have seen a sharp retreat in its total value locked (TVL). As such, after raising $222 million from BlackRock and Apollo, there is a risk that the token will retreat after its debut.<\/p>\n

The post Circle stock at risk as it faces a major triple whammy of headwinds<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Circle Internet Group stock price has pulled back in the past few days, moving from a high of $138.5 in May to the current $79.72. This CRCL pullback may continue in the near future as it faces a triple-whammy of weak technicals, falling USDC supply, and US government yields. Circle stock price has formed a double-top…<\/p>\n","protected":false},"author":1,"featured_media":5176,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-5175","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock"],"_links":{"self":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5175"}],"version-history":[{"count":0,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/posts\/5175\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=\/wp\/v2\/media\/5176"}],"wp:attachment":[{"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradertideinsights.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}