CRCL Stock Outlook as BlackRock Says AI-Powered Stablecoin Growth Could Deepen Circle’s Utility

Circle (NASDAQ: CRCL) stock price is down in pre-market trading today, mirroring the drop in other crypto stocks following the stalling of the broader crypto market’s rally.

However, the drop fails to reflect the recent optimism from BlackRock, which noted that the stablecoin market could grow on the back of rising AI demand, and Circle’s Arc and USDC stablecoin could be poised to benefit.

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BlackRock Says AI Agents Could Drive Stablecoin Demand

In a recent research, the Head of Digital Assets Research at BlackRock, Will Su, noted that AI agents could drive cryptocurrency adoption, adding that stablecoins and blockchain networks could become the payment service rails that are used in machine-to-machine commerce.

“Several types of digital assets may support agentic commerce, but stablecoins are likely to lead transactional use,” BlackRock said.

The $15 trillion asset manager also mentioned Circle as one of the companies that could play a pivotal role in supporting stablecoin and blockchain adoption by AI networks.

The research mentioned the recently launched Arc blockchain by Circle as a platform that could boost the use of the USDC stablecoin. Per BlackRock, the increased use of Arc for payment activity could boost USDC’s utility as a settlement asset and a way of paying transaction fees on the network.

As earlier reported by CoinGape, BlackRock is one of the founding validators of the Arc blockchain that went live on September 16.

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Baird Reiterates CRCL Stock Target After $100M Binance Deal

Circle, in a recent filing with the SEC, disclosed that Binance had made a $100 million equity investment in the company and a five-year deal to expand the adoption of USDC.

Because of this deal, Baird has reiterated its outperform rating on CRCL stock and a $100 target on the stock.

The investment firm says that the USDC distribution deal with Binance is positive for the crypto stock, because Binance is the second-biggest stablecoin distributor in the US and the biggest one outside the US and the EU.

CRCL Stock Forecast as Bearish Momentum Strengthens

The RSI line that is crossing above the signal line on the one-day chart suggests that bulls are tightening their grip on CRCL stock price.

The RSI also has a reading of 56 to show that the momentum remains bullish despite an increase in selling pressure for two trading days.

This drop in pre-market trading has also pushed CRCL stock price to support at the middle Bollinger band of $92. If this support holds, CRCL stock might resume the uptrend and target the next obstacle at $102.

However, if the momentum continues to weaken and selling pressure rises, CRCL stock might move lower to test the support at $84.

This drop could occur if the bullish sentiment across the broader crypto market weakens and pushes traders to begin selling to take profits after the recent gains.