Circle’s stock has started showing signs of a possible pullback, after a key technical indicator flashed a sell signal. Market analyst Ali Martinez pointed out that the TD Sequential indicator on the daily chart has now signaled a potential downturn, even though it recently caught the last local bottom.
Circle shares slipped on Monday as some investors took profits. By Tuesday’s close, the stock was trading around $88.88, up 5.86%, but still down from earlier gains this year. The overall market remains shaky, and many traders are waiting for new economic data before making bigger moves.
Business growth continues despite price swings
Even with the stock’s choppy performance, Circle has been expanding quickly on the business side. The company just secured a Financial Services Permission in the United Arab Emirates, allowing it to operate as a money services provider. This will help USDC support regulated payments and settlements for institutions in the UAE. Earlier in the year, both USDC and EURC were recognized as stablecoins under the region’s crypto rules.
Circle CEO Jeremy Allaire praised the UAE’s regulatory standards, saying they set “a high bar for transparency, risk management, and consumer protection.”
New products and partnerships boost USDC’s reach
Circle also introduced USDCx, a new privacy-enhanced version of USDC built in partnership with the Aleo blockchain. It’s designed for privacy-focused use cases like global payroll, aid distribution, e-commerce, remittances, and DeFi, all while keeping compliance options in place.
The company also struck a new partnership with Bybit to expand global access to USDC. The goal is to improve liquidity, strengthen on- and off-ramps, and push more real-world use. This move also helps Circle reduce its heavy reliance on Coinbase for USDC circulation.
Baird Capital kept its outperform rating on Circle stock and set a price target, saying the Bybit partnership is a strong positive. Circle’s stock has also gained ground over the past week as USDC adoption picked up.
Challenges ahead
Even with this progress, some market watchers warn that slow USDC growth could still drag on Circle’s long-term stock performance. The company faces strong competition from Tether, which continues to dominate the stablecoin market. To stay competitive, Circle needs to keep forming global partnerships and pushing USDC into more markets.
Almost a year ago, Binance partnered with Circle to expand USDC support across trading, saving, and payments on the exchange. Industry data shows that stablecoins as a whole have continued to grow and are becoming a bigger part of global finance, but the market is now far more competitive than before.
