Circle Plunges Another 10% — Is $140 the Next Key Support Level?

TradingKey – Circle (CRCL), the leading stablecoin stock, suffered another sharp decline on Wednesday, falling 10.79% to close at $198.62, breaking below the critical $200 threshold.

Circle 1-Hour Price Chart – Source: TradingView.

The drop follows a steep correction from its June 23 peak of $298, marking a 33% decline in just a few days. While the sell-off may seem dramatic, market analysts say it’s not entirely unexpected.

Peter Eberle, CIO at Castle Funds, noted that Circle’s previous rally was too fast and too far, pushing the stock beyond its fundamental value. Similarly, Alexander Blumer of Two Prime emphasized that Circle’s valuation had become stretched.

From a technical perspective, analysts warn that Circle could fall another 53% to around $140, a level that served as the launch point for its second major rally post-IPO and where the stock consolidated for four days — making it a potentially strong support zone.