Circle Internet Stock Jumps 34%—What’s Next After the GENIUS Act?

Why Is Circle Internet Stock Soaring After the GENIUS Act Approval?

Share prices of Circle Internet jumped 34% on June 18, closing at $199.59 per share. This came after the U.S. Senate had given the landmark GENIUS Act its final blessing, causing ripples across the crypto and fintech worlds. The investors now want to know will this bullish momentum persist, or is a short-term pullback on the horizon?

GENIUS Act Sparks Massive Rally in Circle Internet Stock

Circle’s price action turned a few heads, with the shares having seen an intraday high at $200.90 before settling at $199.59. That is a monumental 6.4x gain from its IPO price of $31 just two weeks prior, on June 5. 

According to Yahoo Finance data, After-hours trading saw bullish action, with Circle price rose another 6.15% to $211.87, according to Yahoo Finance data. In clear terms, the catalyst was the passing of the GENIUS Act by the U.S. Senate, which is one of the very first pieces of legislation that would bring about federal oversight of U.S. dollar-pegged stablecoins.

Source: YahooFinance

As the issuer of USDC, one of the biggest stablecoins in the world, Circle would very much stand to gain from this regulatory clarification. On this basis, the market rallied in Circle's favour, surging 33% in the immediate aftermath of Tuesday night breaking news.

Why the Market Is So Bullish on Circle

The GENIUS Act is considered a game-changer in terms of digital assets in the U.S. It is viewed as setting the U.S. on the path to become the global leader for the establishment of stablecoins and payment systems based on blockchain architecture. U.S. leadership described the bill in a statement as “pure GENIUS,” placing a great emphasis on its attraction of major investment into the space of innovation for digital finance.

The market took an instant widespread reaction, with Circle rallying alongside Coinbase, which surged nearly 16.32% toward $300. Investors consider that this new regulatory framework will pave the way for mainstream stablecoin adoption while slashing compliance risks for U.S.-based issuers such as the Circle.

Circle Stock Technical Analysis: Is More Upside Coming?

On the deep dive into Circle's 30-minute price chart, worries about some bullish character emerge. The stock has clearly been out of a prior $120-$140 range of consolidation, with consistent higher highs and higher lows-ever so accompanied by rising volume and fast momentum.

At the moment, the price closed at $199.81, right after hitting an intraday high of $200.89. Technical indicators say that sentiment should remain bullish. In contrast, the RSI of 84.24, a level that denotes short-term overbought conditions, could see minor pullbacks in the $185-$190 range.

Source: TradingView

Circle Stock Price Prediction: Short-Term and Long-Term Outlook

So what’s the outlook for the stock? This bullishness could last as long as the price respects that critical $185 support zone, according to current momentum analysts. 

On the short-term horizon (one to three days), the stock made its move targeting $220, and if the resumption of buying pressure persists, then $250 will be the next target. This breakout rally was due to institutional interest that is atop retail interest, on the back of a positive regulatory backdrop from the GENIUS Act. 

The future nonetheless looks optimistic. Then 6.4x run-up since IPO and this breakout technical buy pattern signifies that investors are willing to back Circle for that key role it is expected to play in the emerging stablecoin world.