$Circle Internet Corp.(CRCL)$ $Coinbase Global, Inc.(COIN)$ $PayPal(PYPL)$ π£ππ§ $CRCL: Oversold, Loaded, and Poised to Detonate~ or Disintegrate? π§ ππ£
$CRCL just nosedived over 30% in three sessions, triggering oversold RSI conditions on the 60-minute. The selloff comes after Compass Point slashed its rating to Sell and cut the price target to $130. Regulatory tension, earnings compression, and macro rotation have all converged, turning Circleβs post-IPO honeymoon into a volatility storm.
Yet despite the breakdown, someoneβs making a bold bet on the bounce.
πππ Into the final hour of trade yesterday, bulls piled into the 4DTE $217.5C contracts with nearly $1.8M in premium flowing in aggressively. Open interest flipped net negative from 07/18, suggesting short-term speculators are positioning for a reversal or gamma reversion ahead of expiry.
Technically, $CRCL is sitting at a major inflection. The hourly chart is stretched, with heavy volume exhaustion and RSI nearing capitulation. Price action is testing the neckline of a rising head and shoulders structure. A breakdown here confirms $181 as the next key level, while any reclaim of $208β$215 could initiate a short-term snapback rally.
π Bullish reversal trade (only if $208 is reclaimed with force):
β’ Entry: Over $215 intraday reclaim
β’ Target: $240
β’ Stop: Below $206
π Bearish continuation trade (if $205 cracks with volume):
β’ Entry: Below $205
β’ Target: $181
β’ Stop: Above $212
This is a textbook volatility coil: $CRCL is either about to detonate higher on options-driven reflex or flush into the next fib zone on confirmation. Fortunately, Iβm not on the wrong side of this one.
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Trade like a boss! Happy trading ahead, Cheers, BC πππππ
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