What is behind Affirm stock's recent drop in value today

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Affirm slides 7.50% today to $63.55

Highlights

Affirm secured a 24-month, $1.7 billion forward-flow loan purchase agreement with CPP Investments, expandable to $2.2 billion.
Stripe partnership expansion will enable UK merchants to offer Affirm's payment options from July, broadening Affirm’s distribution.
Shares face strong short-term selling pressure, with support near $61.00 and expected five-day trading range between $59.14 and $70.16.

Funding expansions offset by ongoing market-wide selling pressure

Affirm renewed and expanded its funding partnership with the Canada Pension Plan Investment Board through a 24-month forward-flow agreement, under which CPP Investments committed $1.7 billion to purchasing Affirm installment loans, with the commitment potentially rising to $2.2 billion. Since 2019, CPP Investments has purchased nearly $14 billion in Affirm assets. Affirm also expanded its partnership with Stripe to the UK, allowing Stripe merchants there to offer Affirm's payment options at checkout beginning in July, though price action has remained under broader selling pressure.

Anton Kharitonov, expert at Traders Union, highlights the pronounced short-term weakness in Affirm Holdings, Inc. The analyst notes that AFRM is below both its 20-day and 200-day moving averages, suggesting sellers are dominating despite medium-term support holding near the 50-day. He warns that conflicting momentum signals and a heavy intraday tone point to unclear near-term direction. The renewed CPP Investments partnership and Stripe expansion have yet to lift sentiment or change market dynamics. "Persistent selling pressure and mixed technical signals leave Affirm vulnerable to further downside if $61.00 fails — caution is warranted."

Viktoras Karapetjanc, expert at Traders Union, sees strong institutional backing as a foundation for further growth in Affirm. He views the $1.7 billion CPP Investments commitment and the Stripe UK expansion as strategic wins supporting the bullish structure. Despite recent selling, Karapetjanc believes the market offers multiple setups as the baseline scenario shows resilience above $61.00. He remains confident in Affirm's ability to capitalize on its partnerships. "With major partners reinforcing Affirm’s position, I expect further upside and new opportunities for long-term investors."

Conflicting momentum signals as sellers dominate intraday action

Affirm is trading below the 20-day and 200-day Moving Averages ($67.73 and $67.20), but remains above the 50-day ($61.00). This positioning indicates short-term selling pressure with medium- and long-term support intact; the nearest dynamic resistance from the Ichimoku Kijun is at $67.49 and support is seen just above the 50-day level.

Momentum signals are mixed: the Moving Average Convergence Divergence (MACD) remains on a strong buy, whereas the Average Directional Index (ADX) signals a lack of trend strength. The Relative Strength Index (RSI) is moderately constructive, but the Stochastic RSI and Commodity Channel Index (CCI) suggest a neutral to oversold condition. Bull/Bear Power (BBP) shows sellers dominating intraday momentum and signals an oversold market, confirming today’s downside gap of around $1.06. Affirm is currently trading near the session low at $63.55, down $5.15 or 7.50%, with intraday volatility at 6.97%. The intraday tone is heavily pressured after the open, and conflicting readings from MACD and oscillators highlight the lack of clear near-term direction.

Earlier, analysts noted that Affirm's outlook was supported by expanded funding agreements and operational flexibility, but persistent market volatility kept the stock under pressure. With recent technical readings highlighting mixed momentum and a wide trading band, traders should be alert to a potential shift in direction, particularly if the $67.49 resistance or $61.00 support levels are breached in the coming days.

Source of Data: AFRM Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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