Circle (CRCL) 'Plunges' 10% Despite Arc Launch... Second Shock if $85 Breaks

▲ U.S. Congress, Circle (CRCL), Bitcoin (BTC), Visa, Cryptocurrency Regulation/AI-generated image

Circle (CRCL) could not avoid a sharp drop in its stock price despite the launch of the Arc blockchain.

According to cryptocurrency specialized media Coingape on September 16 (local time), Circle's stock price fell by 10% since September 15. The failure of the U.S. crypto market structure bill to pass the Senate pressured investor sentiment. Circle simultaneously launched the public mainnet for the Arc blockchain. BlackRock and Visa were listed as initial validators.

More than 100 institutions participated in Arc. Over 700 million transactions were processed even before the public mainnet launch. However, in the market, selling pressure due to regulatory uncertainty outweighed the effect of Arc's launch. One analyst suggested $85, the 200-day Simple Moving Average (SMA) of Circle's stock price, as a key support level. If $85 breaks, it could fall to $80.

Analyst Coach Nick believed that if the $86 support level is broken, it could drop to $76. Conversely, if it holds $84-$85, there is a possibility of a rebound to $94-$95. The daily chart also showed a bearish reversal pattern, forming a gentle peak before declining. The analysis suggests that this pattern is confirmed if it closes below $84.73 for three consecutive trading days. In this case, an additional 17% drop, corresponding to the pattern's height, could push it down to $70.

Selling pressure also became apparent. The strongest selling since July 10 was observed in the trading volume indicator. On-Balance Volume (OBV) also moved in a downward direction. The Relative Strength Index (RSI) fell from 60 to 49 in two days. Coingape also reported an analysis that if investor sentiment recovers after the impact of the U.S. crypto market structure bill's failure is reflected in the price, it could rebound to $90.

The Federal Reserve's (Fed) interest rate decision and rising U.S. Treasury yields were also cited as burdens. In Coingape's prediction market, 93% of investors expected the Fed to raise interest rates. The U.S. 20-year Treasury yield surpassed 5%, reaching its highest level since July 2007. Coingape analyzed that if selling pressure continues, the $80 support level could be tested again.

[Article Key Summary]

-Circle's stock price fell by 10% after the U.S. crypto market structure bill failed to pass the Senate.

-More than 100 institutions, including BlackRock and Visa, participated in Arc, but regulatory uncertainty pressured the stock price.

-An analysis suggested that if it closes below $84.73 for three consecutive trading days, it could fall an additional 17% to $70.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*