06/04/2021
PayPal (PYPL) stock has seen a steep drop from its high of $308 in early February. The American online payments company nodded its head to the cryptocurrency, Bitcoin, late last year and tech investors welcomed it into their portfolios. The $200-$220 resistance level which had kept the price down for months was torn through, as an almost 50% value was added to the stock in less than three months.
However, the lag in Bitcoin’s growth seems to have soiled the bullish record of PYPL. A analysis could be made that investors are trading the stock in correlation with the cryptocurrency. Regardless, the resistance level was the $300 area, the next psychologically-strong level after $200. Traders may have simply sold at a price they were comfortable with, as the majority of Take Profit orders would have been activated there.
Further more, the fundamental strength of the business has yet to fail, so the bearish streak could be short-term. Share price is also currently at $250, another strong level. Technically, the last weekly plunge occured six weeks ago, after which, indecision has filled the air. A break above the $280 price could indicate the return of the bulls, and their next target would be $400.
