CRCL bull thesis relies on Clarity Act passage driving stablecoin adoption; higher yields also support revenue from interest on bills.

You've got your first pick is circle. We're looking at weakness across cryptocurrency this morning as we wait for that allimportant Senate vote this afternoon on the Clarity Act. uh how are you looking at circle and why did you pick it for the big three today?

Well, first of all, it is because of the Clarity Act that's going to allow securities to be more regulated around tokenization and stable coins which stable coins going back to the yield curve.

If we start regulating that more, there's broader adoption that's demand for the front end of the curve.

Now, with Circle Very specifically, they make their money based off of the interest earned on those bills. So if we have higher yields due to federal freight decisions, then that's actually bodess very well from Circle just for the way that they gather their revenue.

There is certainly a lot of adoption. But this is a play on the Clarity Act. I think there hopefully should be some progress. There may not be. So know that that's certainly the risk, but if there is the clarity, the Clarity Act does go through, then that's more adoption of stable coins.

That's bodess very well for Circle as well as what happens with interest rates.

All right, Rick. So, as we look at Circle, a volatile name here, but we have seen it recover some as we've seen a recovery in Bitcoin here, but a bit of a pullback today. How are we what are you seeing in terms of the levels that are standing out to you for Circle?

Yes, a strong rally off of these lows that we had established down here in the 60s. Kind of a cup and handle type shape here where uh we have a pronounced decline, a gradual bottoming out, and then we are starting to make our way back up.

Uh typically what you'd be looking for with a formation like this would be a uh po uh um a resurgence to a old uh prominent low perhaps or some other resistance point. In this case it seems like 104 makes sense because that's where we had our highs recently and it also lines up with an old low.

So then the cup and handle type shape uh develops the handle part the pullback. Uh now we have seen that materialize here with our gap being filled near the 90 level and then the expectation would be for it to continue in the original direction to give you a coffee cup-l like shake.

Excuse my drawing. It wasn't the greatest artwork there but that was supposed to be a coffee cup. Anyway, so uh uh broadening triangle type shape here is our two boundary lines diverging apart from each other here in this case suggesting higher volatility as you said Marley in the recent days that we've seen here.

Other notable lows include 84 as well as this uh repeated floor that we saw here near 78. Meanwhile, the highs uh beyond 104 uh another relative high here and here to give us a resistance zone between 115 to 119 or so.

When we next think about our moving averages, we can see that our uh 5-day EMA and our 251-day EMA and our 21-day EMA are all quite close together here. So these exponential moving averages show that we are are at a rather important area based on these uh these technical uh indicators between about 89 to 93 or so.

Uh so look for any notable break kind of out of that range to suggest uh further directional uh strength.

So RSI our measure of momentum our green trend line has been broken. We have been trending downward here but we remain above the 50 midline here. We uh had a very brief dip into the overbought area here, that threshold above 70, but it was uh not not something that uh had any staying power apparently.

So now uh what traders would be on the lookout for would be a break below 50, which would suggest further downside potentially.

Volume profile next shows that we have a node here, which is right below where we are now between 80 to 87. The point of control comes in at 8150. Meanwhile, to the upside, another node here, 102 to 116.

All right. And right now as we look at Circle, it is down about 8% so far today on the session, trading just below $90 uh a share.