- The share price of Circle Internet Group closed above $62 and held above support level during Tuesday’s trading session.
- JPMorgan maintained the price target of $120 and sees short-term pressure due to Circle reporting their earnings.
- Technical readings were still bearish, but reduced volatility suggests a breakout is imminent.
Circle Internet Group stock price remained in focus on Tuesday after the shares recovered from early-session weakness while investors assessed new research from JPMorgan ahead of the company’s earnings report.
Although the stock recorded intraday gains and traded above the previous session’s close, technical indicators continued to show that the broader trend remained under pressure.
Circle Internet Group Stock Price Recovers While Technical Trend Remains Weak
Circle Internet Group shares rose 2.87% during Tuesday’s session to trade at $62.03, recovering after briefly falling below $61 earlier in the day. The stock climbed above $63 before easing back to stabilize near the $62 level. While the intra-day recovery maintained the stock above its previous close of $60.30, the overall technical view revealed a stock struggling to stabilize after experiencing an extended downturn.
Source: Google Finance
The four-hour chart of Circle Internet Group stock showed its price at about $60.95, still below the 20-period moving average at $63.55. The placement below the moving average suggested that the momentum had not shifted upwards in the short term.
Moreover, the tightness of Bollinger Bands was an indication that there was low volatility witnessed in the present trading session compared to previous trading sessions.
Immediate support held just above the lower Bollinger Band at $58.58, while resistance was seen near $63.55, followed by Fibonacci retracement levels at $65.96 and $68.61.
Momentum indicators were also on the downside of neutrality. The relative strength index value stood at 43.87 below 50, which means that buying momentum had been improving from weak readings but still was not back to being neutral.
Important Technical Levels to Note
- Support: Immediate support level is $60.00, followed by $58.58, which corresponds to the lower Bollinger Band level.
- Resistance: Near term resistance level is $63.02-$63.55, with further resistance levels at $65.96, $66.72, and $68.61.
- Momentum Indicator: The RSI indicator is trading below the 50 level, with tightening Bollinger Bands suggesting low volatility ahead of a possible directional move.
Circle Internet Group Stock Price Faces Key Levels Ahead of Earnings
According to the current setup on the price charts, there is resistance seen at 20 EMA at $63.02, followed by $63.55, $65.96, and $66.72. The support levels on the downside will be around $60, followed by $58.58.
From a technical perspective, crossing above the moving average is expected to provide a better chart setup for the stock, while going below the recent support level might see the stock coming under pressure again to retest its previous low levels.
The tightening of Bollinger Bands is indicative of decreased volatility, a scenario which tends to precede a major price move.
JPMorgan Maintains $120 Target Despite Near-Term Margin Pressure
Alongside the technical developments, JPMorgan maintained an Overweight rating on Circle and left its $120 price target unchanged. Based on Monday’s closing price of $60.35, the target implies nearly 100% upside.
The bank expects additional pressure during the third quarter as Hyperliquid’s USDC balances migrate to Coinbase, reducing Circle’s economics on those assets.
Despite that expectation, JPMorgan said several balance-sheet trends were more favorable than previously estimated.
Coinbase reported holding approximately $20.25 billion of on-platform USDC during the quarter, a figure that came in slightly below JPMorgan’s earlier estimate.
Based on that result, the bank now estimates Circle held approximately $15 billion of on-platform USDC, compared with its previous estimate of $13.6 billion.
According to the bank, USDC balances held directly on Circle’s platform generate stronger economics than balances maintained on Coinbase’s platform.
Although the improvement was largely offset by higher distribution payments, the revised estimate suggested that Circle’s platform retained a larger share of USDC than previously expected.
JPMorgan stated that the current margin pressure appears tied to the costs associated with expanding USDC distribution rather than reflecting deterioration in Circle’s underlying business model.
While the bank expects profitability to remain under pressure in the near term, it left its longer-term forecasts largely unchanged before the company’s earnings announcement.
Frequently Asked Questions
Why did Circle Internet Group stock price rise during the session?
Circle shares gained 2.87% to $62.03 after recovering from an early decline below $61, finishing the session above the previous close of $60.30.
What technical levels should traders pay attention to?
The nearest resistance level is situated between $63.02 and $63.55, and the nearest support level stays near $60.00 and $58.58 according to the four-hour chart.
Why does JPMorgan keep the same price target?
Even though JPMorgan expects margin pressures in the short run, it maintained an Overweight rating and a $120 price target, owing to the higher estimated on-platform USDC balances.
