PayPal poised for upward breakout as technical momentum builds

92
Current Price: $68.22

Direction: LONG

Targets:
- T1 = $72.50
- T2 = $76.00

Stop Levels:
- S1 = $66.00
- S2 = $64.50

**Wisdom of Professional Traders:**
This analysis synthesizes insights from thousands of professional traders and market analysts, leveraging their expertise to uncover high-probability setups in PayPal’s stock. PayPal has been identified as a potentially strong recovery play after its recent consolidation phase. Using the wisdom of crowds principle, the general consensus points to continued upside potential driven by improving sentiment around fintech and digital payment platforms. Traders suggest focusing on key technical levels that signal breakout opportunities in the coming weeks.

**Key Insights:**
PayPal's stock has faced challenges over the past year, driven by competitive pressures in the fintech space and slowing growth in its core payment services. However, as of September 2025, the company appears to be stabilizing, with management implementing structural improvements to focus on user retention and operational efficiency. The company’s recent moves to integrate AI-driven payment insights and enhance its merchant services have been well-received by analysts. With increased adoption in online payment systems and sustained demand for cross-border transactions, PayPal's fundamentals show early signs of recovery.

Technically, PayPal's current price range suggests strong support near $66.00 and resistance near $72. Analysts observe that the Relative Strength Index (RSI) remains below overbought territory, allowing for upside movement. Seasonality trends and institutional positioning further reinforce a bullish outlook for Q4 2025 as investors prepare for the holiday shopping season, traditionally a catalyst for payment platforms like PayPal.

**Recent Performance:**
PayPal's stock is trading at $68.22, up nearly 8% from its summer lows of around $63. This recovery has been driven by stronger-than-expected Q2 results, which reflected stabilized transaction volumes and increased revenue contributions from international markets. September price action indicates a tightening consolidation pattern, with volumes gradually increasing—often an indicator of impending breakout momentum. The stock's performance in the current quarter suggests renewed interest from institutional investors, with trading volumes reaching above-average levels over the last week.

**Expert Analysis:**
Market experts largely agree that PayPal’s valuation at current levels presents an attractive entry point for medium- and long-term investors. Multiple analysts have highlighted its price-to-earnings (P/E) ratio, which stands below peer averages, offering a discount compared to competitors like Block Inc. and Stripe. PayPal also benefits from robust cash flow generation, which it continues to reinvest into technological innovation and geographic expansion. Technically, chart analysts are closely watching the $70 resistance area, with many arguing a successful break above could lead to sustained upside toward $76 or higher. Recent bullish crossovers in both the MACD and Stochastic indicators confirm this view, signaling momentum is building for an upward move.

**News Impact:**
Recent news plays a major role in shaping PayPal's trajectory. The company's collaboration with Shopify to expand integration within e-commerce platforms has improved its competitive positioning, particularly for small businesses. Furthermore, rumors of further restructuring efforts aimed at cutting costs have generated enthusiasm around additional profitability gains in 2025. While regulatory scrutiny around payment providers remains a headwind, financial analysts believe PayPal’s long-standing compliance history will help mitigate risks. Additionally, its leadership in peer-to-peer payments through Venmo reinforces its ecosystem strength, reducing vulnerability to competitive entrants.

**Trading Recommendation:**
PayPal presents a compelling long opportunity at its current price level of $68.22. The stock appears to be entering an accumulation phase following a prolonged period of underperformance earlier this year. Key technical levels suggest that momentum is building, particularly with strong institutional activity and improved sentiment heading into Q4. A break above $72.50 could unlock further upside potential to $76.00, while downside risks can be managed effectively with stops at $66.00 and $64.50. Traders looking for fintech exposure should consider PayPal as it rebounds toward stronger growth metrics.

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