CRCL Stock Tests $100 Support Level After Freedom Capital Issues Cautious ‘Hold’ Rating

• Freedom Capital said while there’s “strong potential” for stablecoin adoption, there is uncertainty around macro factors that could adversely impact Circle’s stock, like further delays in the CLARITY Act’s passage.
• The ‘Hold’ rating comes after Compass Point downgraded CRCL’s stock to ‘Sell’ from ‘Neutral’ earlier this month.
• Retail investors on Stocktwits expressed skepticism about near-term progress on the CLARITY Act, though many continue to view eventual passage as a meaningful catalyst for Circle.

Shares of Circle Internet Group (CRCL) dropped on Tuesday amid weakness in the broader market after Freedom Capital initiated coverage of the company with a cautious ‘Hold’ rating.

CRCL’s stock tumbled more than nearly 6% in midday trade amid broader market weakness, after a momentary dip below $100 before climbing back up. The shares tested the $100 psychological support level in the prior session as well, before closing at around $106. Retail sentiment around the USDC (USDC) stablecoin issuer remained in ‘neutral’ territory over the past day, accompanied by ‘low’ levels of chatter.

Freedom Capital put a price target of $120 on the stock, implying a potential upside of 20%, according to a note to investors cited by TheFly. The firm said it saw “strong potential” for stablecoin adoption, specifically for USDC, which dominates around 25% of the total stablecoin market. This positions Circle as a key player in the broader digital assets ecosystem as the leading issuer of compliant stablecoins, the analyst added. 

However, Freedom Capital also warned that there is uncertainty around several potential outcomes, including the trajectory of interest rates, commercial adoption of stablecoins, regulatory changes, and rising competitive dynamics, which could impact CRCL’s stock price.

CLARITY Act Remains Unclear

The CLARITY Act has been stuck in limbo since late January, when it was originally scheduled for a markup in the Senate. While the bill passed the House in July 2025 and cleared the Senate Agriculture Committee in January 2026, it has yet to advance through the Senate Banking Committee.

The debate over stablecoin yield between the cryptocurrency and banking industries delayed the progress, and a new draft is yet to be debated for discussion. Lawmakers are now targeting a late-April markup following the Easter recess, with a potential full Senate vote expected in the coming weeks if the process moves forward.

Retail investors on Stocktwits indicated that they were not optimistic about the chances of CLARITY passing this month, but maintained that it will be a catalyst for the company once it becomes law.

CRCL Stock Downgrade Adds Pressure

This cautious rating comes after Compass  Point downgraded Circle’s stock to ‘Sell’ from ‘Neutral’ earlier this month and trimmed its price target to $77, down from $79. The firm said Circle’s gross margins contracted in the first half of the year despite USDC’s resilience in this cycle.

According to consensus estimates on Koyfin, the average price target on CRCL’s stock stands at $128.33, implying a potential upside of over 28% from current levels. Out of the 23 analysts covering the shares, two gave CRCL a ‘Strong Buy’ rating, nine recommended ‘Buy’, and the largest cohort of 10 analysts rated the shares ‘Hold.’ The remaining two gave CRCL’s stock a ‘Sell’ rating.

The shares have gained more than 23% this year and are up over 45% since Circle’s New York Stock Exchange debut in June.

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