Stablecoin issuer Circle Internet Group’s shares sharply declined on Thursday following Wall Street downgrade notes and reports of legal investigations related to the exploit in the DRIFT detailed analysis protocol. It closed at $85.10, down 9.9% in Nasdaq trading. The stock has lost 24% in the last month and 43% in six months.
Circle Internet Group (CRCL) stock. Source: Yahoo Finance
Compass Point’s ‘Sell’ Recommendation and $77 Target Price
Compass Point downgraded Circle from “neutral” to “sell” and set a $77 target price. Regulatory uncertainties continue in the US; the market structure law is stalled, and banking groups are lobbying against yield-bearing stablecoins. Bernstein analysts stated that concerns are overstated, highlighting the increase in USDC adoption and strong reserve income.
Drift Protocol’s $280 Million Exploit Details
Drift Protocol, a Solana-based derivatives platform, suffered a $280 million loss. The attack stemmed from oracle manipulation and vulnerabilities in liquidity pools. Oakland-based Gibbs Mura law firm is calling affected investors for a class action lawsuit. This incident once again exposed smart contract vulnerabilities in DeFi protocols.
Source: Cointelegraph
USDC Conversion and Circle’s Indirect Risk
Circle is not directly involved, but the stolen assets were converted to USDC and not frozen. This situation heightened counterparty risk concerns in crypto markets. Although USDC’s reserves remain strong, the role of stablecoins in tracking assets post-exploit has sparked debate. Regulators may mandate freeze mechanisms in such events.
Why Did DRIFT Price Fall? Technical Indicators
DRIFT token is currently trading at $0.03, down 7.98% in 24 hours. RSI at 39.61 level (neutral-oversold range), overall trend downward. Supertrend giving bearish signal, EMA 20 forming resistance at $0.0411. DRIFT futures volume also declined, volatility high.
DRIFT Support and Resistance Levels Table
| Level | Price ($) | Score (100/100) | Distance (%) | Sources |
|---|---|---|---|---|
| S1 (Strong) | 0.0248 | 70 ⭐ | -28.30 | Fibo 0.000, Donchian Lower, HVN 3 |
| S2 (Strong) | 0.0336 | 69 ⭐ | -2.86 | S1, POC, MACD Cross |
| R1 (Strong) | 0.0350 | 65 ⭐ | +1.19 | Pivot Point, HVN 5, Prev Day Close |
| R2 (Strong) | 0.0402 | 62 ⭐ | +16.22 | HVN 4, R1, BB Middle, SMA |
Investors should closely monitor the S2 ($0.0336) level; if broken, a sharp drop to S1 could follow. Recovery after the exploit remained limited.
Source: https://en.coinotag.com/circle-shares-drop-10-drift-exploit-impact
