Watch These Circle Price Levels as the House Votes on Stablecoin Framework

Source: TradingView.com ### Key Takeaways

• Circle shares remain in focus as stablecoins take center stage in what the House of Representatives have dubbed "Crypto Week.”
• After setting an all-time high in late June, the stock retraced below the respected 50-hour moving average, but has remained rangebound since.
• Investors should watch important support levels on Circle's chart around $176 and $144, while also monitoring vital resistance levels near $227 and $299.
• Bars pattern analysis forecasts a bullish upside target of around $470.

Circle Internet Group (CRCL) shares remain in focus as stablecoins take center stage in what the U.S. House of Representatives have dubbed "Crypto Week.”

Lawmakers are expected to vote on the GENIUS Act in coming days, a bill that provides a framework for stablecoins, a cryptocurrency with its value pegged to a traditional currency, often the Greenback. A successful vote could significantly increase the legitimacy and use of stablecoins as a payment option, a development likely to boost Circle, which issues USD Coin (USDC), a leading stablecoin tied to the U.S. dollar.

Circle shares have soared more than six-fold from their $31 initial public offering (IPO) price, buoyed by the legislation’s passage through the Senate last month, though they have retraced 37% from their record high set in late June as investors locked in profits.

Below, we break down the technicals on Circle’s one-hour chart and identify important price levels as crypto week gets underway.

Rangebound Conditions

After setting an all-time high (ATH) in late June, Circle shares retraced below the respected 50-hour moving average, but have remained rangebound since.

More recently, trading volume has steadily decreased while the relative strength index (RSI) hovers just above oversold territory, indicating that market participants may remain on the sidelines as they await further developments this week.

Let’s identify several important support and resistance levels on Circle’s chart that investors may be watching.

Important Support Levels to Watch

Firstly, it’s worth keeping an eye on support around $176. Investors could look to accumulate shares around this price point near a sideways trough that formed on the chart throughout late June and early July. This area also sits in the same vicinity as the 50% Fibonacci retracement level when applying a grid from last month’s low to high.

The bulls’ inability to successfully defend this level could see the shares retrace toward $144. This area may provide support near the low of a minor pullback that emerged on the chart shortly after the June 16 breakaway gap.

Weiterlesen## Vital Resistance Levels to Monitor

Buying around current levels could see the shares initially climb to $227. The price may run into selling pressure in this area near a range of similar trading activity that occurred in late June.

A close above this level could spark a rally toward $299. This area would likely attract significant attention near the stock’s record high, a location where tactical traders may look for exit points.

Bullish Bars Pattern Target

Investors can forecast a bullish upside target if the shares move into price discovery by using bars pattern analysis.

When applying this technique to Circle’s chart, we take the price bars comprising the stock’s strong uptrend from mid to late June and overlay them from the low of the recent rangebound period. This projects a bullish target of around $470, about 150% above Friday’s closing price. We selected this earlier trend as it followed a sideways trend, providing insight as to how a new move higher may take shape.

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