- Circle stock price has surged by 160% from its lowest level this year.
- The company’s stablecoin assets have continued growing this month.
- Technical analysis suggests that the CRCL stock price will continue rising.
Circle stock price remains in a bull market after soaring by 160% from its lowest level this year, and is hovering at its highest point since October last year. CRCL was trading at $132, bringing its market capitalization to over $32 billion.
Circle Stock Price Jumps as USDC Growth Continues
CRCL has rallied in the past few weeks, a trend that accelerated after it published its financial results. These results showed that its revenue, profitability, and stablecoin growth gained steam.
The results revealed that its stablecoin supply jumped by 72% in the fourth quarter to over $75.3 billion. This figure has now increased significantly in the past few months, with the USDC having a market capitalization of over $82 billion.
Its EURC stablecoin now holds over $430 million in assets, while Circle USYC holds over $2.37 billion, making it the biggest money market fund in the crypto industry.
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Most importantly, data compiled by Artemis reveals that the USDC transaction volume jumped to over $6.2 trillion, while the addresses jumped to 14.5 million. EURC’s transaction volume rose to $3.7 billion as the number of transactions jumped to 2.3 million.
The results showed that its revenue jumped by 77% to over $770 million, while its adjusted EBITDA rose to $167 million. Therefore, with the stablecoin supply rising, chances are that its revenue and profits will continue growing this year.
On top of this, the ongoing war in Iran has pushed inflation significantly higher. A report released on Wednesday showed that the headline and core producer price index (PPI) rose to 3.4% and 3.9%, respectively. Inflation will likely continue rising, which will push inflation higher.
Therefore, the Federal Reserve will likely maintain a more hawkish tone this year, which explains why short-term bond yields have continued rising. The ten-year yield has jumped to 4.31%, while the 2-year rose to 3.95%.
Rising US bond yields are highly bullish for Circle stock because of its business model, where it invests its reserves.
CRCL Stock Price Technical Analysis
The daily chart shows that the CRCL share price has rebounded in the past few weeks. It has jumped from $48 in February to the current $132. It remains along the upper side of the Bollinger Bands indicator.
The stock has jumped above the 50-day Exponential Moving Average (EMA), while the Average Directional Index (ADX) has jumped to a record high of 50.
It has moved above the 23.6% Fibonacci Retracement level, while the Relative Strength Index (RSI) has continued rising.
Therefore, the most likely CRCL stock price forecast is bullish, with the target being at $175, the 50% Fibonacci Retracement level, which is about 35% above the current level.
However, with the RSI being in the overbought level, there is a risk that it will pull back briefly, potentially to $100 as investors book profits. This retreat will be a good opportunity to buy as the company has some bullish fundamentals.
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