$Circle(CRCL)$ [Circle plunged 15%, is the valuation story beginning to turn? ]
Circle plunged 15% last night, closing at $222.65, the largest single-day retracement since its listing. There was no major negative news, but the market began to question its story of "stablecoin turning into a payment giant". The BIS report named the potential risks of stablecoins, which was seen as a blow to the USDC model, and the investment bank Compass Point gave a target price of $205 in its first coverage, believing that the current valuation is overdrawn. Cathie Wood's Ark Fund (ARK Invest) also continued to reduce its holdings.
The options market reveals an attitude of "walking while guarding": the trading volume last night reached 470,000, which was 1.67 times the daily average, indicating that the trading enthusiasm is still very high; the Put/Call transaction ratio dropped to 1.31, which was slightly relieved compared with the high point last week, indicating that the short-term risk aversion sentiment is weakening; but from the perspective of open contracts, Put/Call is still as high as 1.91, indicating that funds are still vigilant about the future market. The implied volatility of the contract expiring on June 27 this week reached 185%, and the expected fluctuation range was ±25 US dollars; Max Pain moved up to US$255, reflecting that the market expects the center to rise, and the funds have not completely turned empty.
Will the gap near US$200 be the next support? Or is it just a downward relay?
Not an investment advice.