Circle Jumps 4.92% As Technicals Signal Potential Rebound From Key Support

Circle (CRCL) surged 4.92% in the latest session, closing at $117.99 on substantial volume of 8.97 million shares. This price action occurred within a wider context of recent volatility, demanding thorough technical examination across multiple indicators.
Candlestick Theory
The September 9th session formed a robust bullish candle with a long real body (open: $112.62, close: $117.99), decisively reversing the prior three bearish sessions. This pattern suggests accumulation near the $112-$115 support zone, which aligned with the September 5th and 8th lows. A critical resistance level emerges at $120.75 (September 9th high), with secondary resistance at $122.27. Conversely, failure to sustain above $112.62 would signal vulnerability to retest the psychological $100 threshold.
Moving Average Theory
Using available data, the 50-day moving average (approximately 153.24) remains decisively above the current price, confirming the intermediate downtrend. However, the shorter-term 20-day MA (near 114.50) was breached upside during the September 9th rally, hinting at potential near-term trend stabilization. The persistent trading below declining mid-term averages continues to reflect bearish sentiment.
MACD & KDJ Indicators
MACD histograms have transitioned to positive territory following a bullish crossover, suggesting building upward momentum. KDJ shows the %K line (13.99) recently crossed above the %D line (19.67) from oversold territory below 20. While this alignment may indicate short-term recovery potential, both oscillators remain below their midlines, requiring confirmation to establish sustained bullish momentum.
Bollinger Bands
Price recently rebounded from the lower band (currently near 98.50), compressing bands through late August signaled diminishing volatility. The September 9th close above the midline (20-SMA at 114.50) marks a significant shift, opening room toward the upper band near 128.40. Band expansion from current levels could validate a new directional impulse.
Volume-Price Relationship
Volume spikes accompanied key downside moves (August 14: 17.9M shares, September 2: 10.3M) but diminished during consolidation near $112-$118. The September 9th advance occurred on 4% higher volume than the prior session, lending credibility to the breakout. Sustained volume above 8.5M shares on upward moves would strengthen bullish confirmation.
Relative Strength Index
The 14-day RSI (47.32) has rebounded from oversold readings below 30 in early September, neutralizing immediate downside pressure. While RSI remains below the 50 midline, its recovery trajectory suggests weakening bearish momentum. Traders should monitor whether it can breach 50 to signal strengthening upside potential.
Fibonacci Retracement
From the June low ($83.23) to July peak ($263.45), the 61.8% retracement level aligns precisely at $112.87. This Fibonacci support clustered with the September price action, where repeated tests near $112-$115 successfully held. The 50% retracement ($173.34) and 38.2% level ($121.03) now serve as critical overhead resistance zones that may cap recovery attempts.
Confluence and Divergence Observations
Strong confluence appears at the $112-$115 support region, reinforced by the 61.8% Fibonacci level, Bollinger lower band proximity, and volume-backed price rejection. Bullish alignment exists between MACD, KDJ, and RSI momentum improvements. Notable divergence appears in the sustained price position below the declining 50-day MA despite improving oscillators, reflecting persistent intermediate-term bearish pressure. A decisive break above $120.75 with expanding volume would provide critical confirmation of momentum shift.