Circle’s share price has been in bullish territory this month, hitting its highest level since November last year, and the trend could continue as the USDC stablecoin’s market cap approaches the $80 billion mark.
Conclusion
- Circle’s stock price continued its bull run this week.
- USDC market capitalization is approaching the milestone of $80 billion.
- Technical analysis points to a rise of $174.8, which is 45% higher than the current level.
CRCL shares soared to $122.55, up 147% from this year’s low, giving it a market capitalization of more than $30 billion.
There are signs that Circle’s business is thriving as demand for its stablecoin grows. The supply of all USD Coin (USDC) tokens has reached over $79.8 billion, up $10 billion from last month’s low point.
More data shows that USDC has become the most stable currency used in the industry. Its volume has reached nearly $6 trillion in the last 30 days, much higher than USDT’s $1.1 trillion.
Increasing USDC supply is important to Circle because of its business model. It generates most of its income by investing USDC shares in short-term government bonds, which currently yield around 3.5%.
Government bond yields are likely to remain high for some time as the Federal Reserve is unlikely to cut interest rates several times this year due to the ongoing Iran war. This war will cause inflation to be much higher than where it is today, as the cost of energy and transportation will rise.
The latest figures showed that Circle’s business continued to thrive in the last quarter of last year, with revenue up 77% to $770 million and EBITDA to $167 million.
Additionally, Circle Payment Network is seeing more user adoption as it has acquired 55 partners and more are coming. This solution has the potential to disrupt the Swift Network, which transfers trillions of dollars every year. It uses the USDC stablecoin to save money and ensure instant payments.
Stock Price Forecasting: Technical Analysis
The daily chart shows that the CRCL stock price has risen again this month. It has already broken above the 23.6% Fibonacci Retracement level, which is determined by connecting the highest and lowest recorded levels.
The stock broke above its 50-day exponential moving average, while the Supertrend indicator turned green. The average directional index has moved to 40, which is an indication that the upward trend is accelerating.
Therefore, the stock is likely to continue its rally as the bulls target the 50% Fibonacci Retracement level at $174, which is about 45% above the current level.
