Analysis: If the key support level holds, Circle's stock price may rebound to around $130 in the coming weeks.

Circle (CRCL) stock is showing signs of a technical rebound after a sharp single-day drop of about 20%. Analysts believe that if key support levels hold, the stock price could rebound to around $130 in the coming weeks, an increase of about 25% from current levels. Technically, CRCL has formed significant support around $100.75, a level that coincides with the 100-day exponential moving average and the 0.236 Fibonacci retracement, attracting bargain hunters. Institutionally, Ark Invest increased its holdings by approximately $16 million during the decline, indicating that some funds view this pullback as a buying opportunity. However, if this support level is broken, the stock price could fall to around $84.25. Fundamentally, the market previously worried that the CLARITY bill draft could restrict stablecoin-related yield mechanisms, thereby impacting Circle's growth. Bernstein maintained its $190 price target, noting that the bill would not affect Circle's revenue generation through reserve assets (such as short-term US Treasury bonds and deposits), nor would it affect its revenue distribution to distribution partners such as Coinbase, Binance, and OKX. Data shows that Circle earned approximately $2.64 billion in revenue in 2025 based on approximately $75.3 billion in USDC reserves. Analysts believe that increased competition for revenue in the industry could actually strengthen Circle's market position. (Cointelegraph)