Circle stock showed signs of potential decline as a technical indicator signaled a sell opportunity, according to market analyst Ali Martinez, despite recent positive business developments for the stablecoin issuer.
- Circle shares saw a decline after hitting a sell signal on the TD Sequential indicator; the stock erased earlier gains this year.
- Despite market fluctuations, Circle has expanded its regulatory presence, securing Financial Services Permission in the UAE to operate as a money services provider.
- Circle has also launched USDCx, a stablecoin with enhanced privacy features through a partnership with Aleo blockchain, and partnered with Bybit to boost global access to USDC.
Martinez noted that the TD Sequential indicator on the daily chart has flashed a sell signal after previously identifying the recent local bottom, pointing to potential downside for the stock.
While Circle shares closed lower on Monday as investors took profits, they traded at around $88.88 per share at Tuesday’s close, up 5.86%.
Year-to-date, Circle shares have erased earlier gains amid volatility and uncertainty in the cryptocurrency market. Market participants are monitoring upcoming macroeconomic data before making investment decisions.
The company received Financial Services Permission to operate as a money services provider in the United Arab Emirates, expanding its regulatory footprint. USDC stablecoin plans to facilitate regulated payments and settlements for institutions in the UAE. The milestone follows recognition of USDC and EURC as stablecoins under local crypto token rules earlier this year.
“We are honored to work with the FSRA in ADGM. Their framework sets a high bar for transparency, risk management, and consumer protection,” Circle CEO Jeremy Allaire stated.
New Circle Partnerships Boost USDC Reach
Circle partnered with the Aleo blockchain to launch USDCx, a stablecoin designed for banking-level privacy. The token will support use cases including global payroll, critical aid distribution, global e-commerce, peer-to-peer payments and remittances, DeFi, and configurable compliance, according to the company.
The firm also announced a partnership with cryptocurrency exchange Bybit to expand global access to USDC, focusing on liquidity, on/off-ramps, and real-world utility. The companies plan campaigns and initiatives to increase USDC utility, which would reduce Circle’s dependence on Coinbase for USDC circulation.
Baird Capital reiterated its outperform rating for Circle stock, citing the Bybit partnership, and set a price target for the shares. The stock has posted gains over the past week amid rising USDC adoption.
Market observers note that stagnant USDC adoption could negatively impact Circle’s stock performance. The company faces competition from Tether’s dominant market position and requires global partners to expand its reach.
Binance partnered with Circle nearly one year ago, expanding USDC availability for trading, saving, and payments on the exchange. The stablecoin market has grown significantly in total value, with stablecoins becoming increasingly integrated into the global financial system, according to industry data.