Circle Stock: Elliot Wave Points to a Rally as Key Metric Nears $7 Trillion

Key Insights

• Circle stock is moving to the third phase of the Elliott Wave.
• The total number of USDC transactions over the last 30 days rose to $6.9 trillion.
• Circle’s revenue and profitability growth is gaining momentum.

Circle stock price has sold off in the past two weeks as concerns about the CLARITY Act have continued. CRCL is down by 30% from the year-to-date high. Still, an Elliot Wave analysis suggests the stock is due for a near-term comeback.

Circle Stock Price Elliot Wave Analysis

Elliot Wave is a classical chart analysis technique that looks at how assets move. The impulse wave consists of five waves: three are bullish and two are corrective.

A closer look at the daily chart shows that Circle stock has completed the first phase of the Elliot Wave, which is usually bullish. This phase saw it move from the all-time low of $50.4 in February to a high of $136 last month.

The stock is now in the second phase, which is usually a corrective one. The main rule for the second phase is that it should not fully retrace the first phase.

There are now signs that the stock has bottomed since it has formed a small morning star candlestick. If this is true, it will move to the third phase, which is usually the longest.

It is had to predict where the third phase will take it. The initial target is the year-to-date high of $135, which is about 45% above the current level.

A move above that target will lead to more upside. Potentially to the 61.8% Fibonacci Retracement level at $204. This Fibonacci was drawn by connecting the lowest and highest levels on record.

A surge to this target will be 116% above the current level. This rally will be confirmed when it jumps above the 50% retracement level at $175.

CRCL Stock to Benefit Amid the Growing USDC Adoption

Circle has some of the best fundamentals among other crypto stocks. One of the most important metrics is that the usage of the USDC stablecoin continues to grow.

For example, Circle has minted close to $10 billion USDC tokens in the last month, bringing the total market capitalization to about $80 billion.

This increased minting is a sign of soaring demand for the coin. Indeed, data compiled by Artemis shows that the network had an adjusted transaction volume of $6.9 trillion in the last 30 days. This is a major achievement considering that Visa handled transactions worth $14.2 trillion last year.

The number of active addresses has continued growing and recently crossed 1.1 billion. Also, there are over 15.6 million stablecoin addresses on the network.

These numbers show that, while USDT is the largest stablecoin by assets, USDC is the most widely used.

The rising USDC supply is also driving higher revenue as the company invests in short-term government bonds.

Data compiled by TokenTerminal shows that Circle generates the third most revenue in the crypto industry after Tether and Tron. It made over $198 million in the last 30 days, lower than Tether’s $459 million and Tron’s $213 million.

Circle stock will likely benefit from the ongoing ramping up of the Circle Payment Network (CPN), which aims to disrupt the Swift network, which handles trillions of dollars a year. By leveraging USDC and EURC stablecoins, the company is saving its partners substantial sums on transaction costs.

Additionally, analysts believe that stablecoins will be used in handling payments by AI agents. If this happens, Circle will be the top beneficiary.

Summary

Circle stock price jumped sharply after publishing strong financial results in March. These results showed that its business was doing well amid ongoing growth in stablecoin inflows.

Its technicals, including the Elliot Wave pattern points to a strong rebound in the coming weeks. This view is supported by its strong fundamentals, including its role in AI agents and the Circle Payment Network.

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