PayPal stock selloff deepens as Amundi and Readystate Asset Management reduce stakes

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PayPal drops 3.18% to $53.18 today

Highlights

Amundi reduced its PayPal Holdings stake by 58.9% in the second quarter, bringing holdings to 5,673,391 shares valued at $244.98 million.
Readystate Asset Management LP cut its PayPal position by 39% during the same period, while VIRGINIA RETIREMENT SYSTEMS ET Al acquired 285,700 new shares for $12.34 million.
PayPal stock trades below key short- and medium-term moving averages with a high probability of a move toward $51.61 support and a low probability of breaking above $54.62 resistance.

Major institutional sell-offs intensify downward pressure despite new buying

Institutional activity in the second quarter saw Amundi significantly reduce its stake in PayPal Holdings by 58.9%, now holding 5,673,391 shares valued at $244.98 million, according to MarketBeat. This substantial liquidation from a major holder increased available supply and contributed to downward pressure on the stock. Readystate Asset Management LP also decreased its position by 39% in the same period, which further weighed on sentiment, as reported by Themarketsdaily. In contrast, VIRGINIA RETIREMENT SYSTEMS ET Al entered a new $12.34 million position by acquiring 285,700 shares, providing some offsetting demand, MarketBeat noted.

Mixed momentum signals as share price tests technical resistance

On the technical front, PYPL is trading below its MA-20 and MA-50, indicating ongoing short- and medium-term selling activity, while support remains at the MA-200. The Ichimoku Kijun is set at $54.62, which marks immediate resistance for any rebound attempts. Momentum indicators are mixed: MACD is neutral, ADX leans to a sell signal reflecting weak trend conviction, and RSI is in sell territory but not yet oversold. Stochastic RSI is oversold, CCI sits neutral, and Bull/Bear Power gives a buy signal, revealing attempts by buyers to gain ground intraday despite the prevailing bearish sentiment.

Elevated downside risk as range-bound trade outlook prevails

Looking ahead, PYPL is expected to fluctuate within a range of $51.61 to $54.75 in the near term. The likelihood of a sustained upward move is currently very low, with downside risks remaining high and a bullish reversal considered unlikely at this stage. The base scenario is a sideways movement within this range, though a break above $54.62 would signal potential bullish momentum, while a drop below $51.61 could open the path for further declines.

Anton Kharitonov, expert at Traders Union, sees continued weakness in PayPal due to heavy institutional selling and technical bearishness. Key levels below the MA-20 and MA-50 reinforce a defensive stance, while the recent buying from VIRGINIA RETIREMENT SYSTEMS ET Al does little to shift the broader negative sentiment. Price action points to a likely sideways range between $51.61 and $54.75, with downside risks dominating. "Unless PayPal can reclaim $54.62, I remain very cautious and view any rebounds as likely short-lived."

Earlier, analysts noted that PayPal faced ongoing downside risk amid restructuring efforts and persistent selling pressure, with technical indicators reflecting a cautious medium-term outlook. The latest data on institutional flows and deepened technical weakness reinforce the need for traders to monitor the $54.62 resistance and $51.61 support levels, as a break from this range could set the next directional move.

Source of Data: PYPL Price Analysis by TU

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.