Current trend

The stocks of the largest debit payment system PayPal Holding Inc. are correcting at 62.00.

It became known that the company is awaiting another trial. This time, the plaintiff is the Australian Securities and Investments Commission (ASIC), which believes that PayPal Australia Pty Ltd. included an unfair condition in agreements with small business customers, according to which business account holders must notify the company of errors in calculating mutual fees within 60 days. If no error statements are received during this period, all fees are counted as accurate. The process has just begun, and after the necessary verification measures, it will become clear exactly how these claims will affect PayPal Holding Inc. 

The implementation of the recently released PayPal USD or PYUSD stablecoin did not meet the expectations of investors. According to the analytical company Nansen, demand is low, and approximately 90.0% of all coins are now stored in the wallets of the issuer Paxos Trust.

The financial condition of PayPal Holding Inc. is quite stable, and the latest report reflected revenue in Q2 at 7.29B dollars, which is higher than 7.04B dollars a quarter earlier, and earnings per share of 1.16 dollars, which is slightly lower than 1.17 dollars earlier, but significantly exceeds the 2022 average of 0.9 dollars.

Support and resistance

The correction trend continues on the daily chart, which keeps the price inside the global descending channel with dynamic boundaries of 52.50–71.00.

Technical indicators hold the sell signal and increasingly clearly indicate a prolonged downward correction: the range of EMA fluctuations of the alligator indicator has begun to expand again, and the AO histogram forms corrective bars while in the sales zone.   

Support levels: 60.10, 54.00.

Resistance levels: 63.60, 69.00.

Trading tips

In the case of continued decline in the asset, and if the price consolidates below the support level of 60.10, short positions can be opened with a target at 54.00 and stop-loss at 63.00. Implementation time: 7 days and more.

If the asset continues local growth and the price consolidates above the local maximum of 63.60, long positions will be relevant with a target at 69.00. Stop-loss – 60.00.