PayPal's stock continues to show positive momentum ahead of its second-quarter earnings report, while the PYUSD stablecoin loses ground to competitors.
State of PayPal Stock
Amid anticipation for the second-quarter earnings report, PayPal's stock has risen and formed a bullish golden cross on the daily chart. Analysts view revenue and forward guidance as critical indicators of the company's performance. According to Yahoo Finance, the average revenue estimate is $8.08 billion, which marks a 2.48% increase from the same period last year.
Challenges Facing PYUSD Stablecoin
As PayPal's business growth slows, attention shifts more towards its stablecoin, PYUSD, which is losing ground to конкуренты. The circulating supply of PYUSD is currently $890 million, down significantly from its record high of $1.02 billion. Meanwhile, the overall stablecoin market has surged to over $271 billion with USDT leading at over $163 billion.
Technical Analysis of PayPal Stock
Over the past few months, PayPal's stock has experienced substantial growth, moving from $55.83 in April to $77 today. The formation of a bullish golden cross has occurred as the 50-day and 200-day moving averages have crossed. The stock has also surpassed the 38.2% Fibonacci retracement level, suggesting potential continued growth with the next target being at the 23.6% retracement level at $83.37.
While PayPal's stock shows positive trends ahead of the second-quarter report, its PYUSD stablecoin faces significant competitive challenges.
