Circle Internet Group shares slip after 16% Thursday rally

Circle Internet Group Inc. (NYSE: CRCL ) stock edged lower Friday as investors took profits after a sharp rally.

The stock jumped 16% Thursday and has gained 63.21% over the past month.

Meanwhile, Bitcoin (CRYPTO: BTC) slipped 0.10% over the past 24 hours to $81,180.40.

Bitcoin Rally Boosts USDC Demand Bitcoin's move above $80,000 on Thursday helped drive Circle shares higher.

Higher crypto prices can boost trading activity and demand for Circle's USDC stablecoin.

Circle backs USDC primarily with cash and short-term U.S. government securities.

A larger reserve base can increase the company's reserve income.

Investors are also watching Circle's Arc blockchain.

The Arc mainnet is scheduled to launch Sept.

16.

The network targets cross-border payments and institutional tokenization.

See More: Top Value Stocks Circle Technical Analysis Circle remains well above its major moving averages despite Friday's pullback.

The stock trades 19.7% above its 20-day simple moving average of $82.38 and 37.4% above its 50-day SMA of $71.82.

It is also 14.6% above its 100-day SMA and 16.1% above its 200-day SMA.

The setup points to a strong uptrend.

However, the stock also looks extended after its recent surge.

Momentum remains positive.

The MACD is above its signal line, while the histogram is positive.

That suggests buyers continue to defend pullbacks.

However, the 50-day SMA remains below the 200-day SMA following a June "death cross." The 20-day SMA has since moved above the 50-day SMA, signaling an improving short-term trend.

Traders may watch $111 as resistance and $90 as support.

Analyst Outlook Circle carries a Hold consensus rating and an average price forecast of $94.77.

Wolfe Research raised its price forecast to $65 on Aug.

25 while maintaining an Underperform rating.

Susquehanna raised its forecast to $92 with a Neutral rating on Aug.

24.

TD Cowen raised its forecast to $87 and maintained a Buy rating on Aug.

12.

Circle (CRCL) Price Action Circle shares were down 1.91% at $101.26 in Friday premarket trading, according to Pro.

Nasdaq futures rose 0.10%, while S&P 500 futures fell 0.22%.

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