It seems that the Mastercard company shares await a similar fate for the shares of the companies that announced their support for the use of digital currencies during the last period, after the company announced its new plans to allow its customers to use some cryptocurrencies on its network in payments later this year without talking about those currencies .
The Executive Vice President of MasterCard MA said yesterday evening, Wednesday, the company’s preparations for the future of encryption and payments, and the start of Mastercard’s support for a number of digital currencies on its network directly. The announcement comes less than a week after the giant Tesla announced that it had invested about $ 1.5 billion in bitcoin and considered Bitcoin as a means of payment in some of its products.
PayPal preceded MasterCard and Tesla in its support for digital currencies during the past year, after announcing in October 2020 that its customers would be allowed to carry out buying and selling operations through digital currencies.
This, and going back to the historical data, we find that the impact of PayPal’s decision strongly supported the rise of Bitcoin to approach its highest levels ever in that period at levels of $ 12,440, but it also supported the rise of PayPal PYPL shares by more than 5% that day, a similar scenario that was repeated Following Tesla’s announcement of investing in Bitcoin.
Therefore, it is possible that the MasterCard MA share will face a similar fate, and we will see a rise in the near term for the company’s shares and may then return to decline again, especially since the stock started to rise since the release of the company’s earnings data in 2020, which came better than expected, and then the stock rose by more than 2 %.
Looking at the MasterCard MA stock chart, we notice that it is trading inside a bullish channel, and is currently testing the 50 and 100 moving averages on the 4 hour chart. Taking into account the rise in shares of Tesla TSLA and PayPal PYPL after the decision to support cryptocurrencies, this may lead to witnessing the stock’s rise in today’s trading.
It is worth noting that the stock of MasterCard MA is currently trading up by 0.83% in early trading at $ 337, and if the upside scenario is followed, we may witness a test of the $ 355 level. However, the positive outlook will diminish with a break of $ 312 levels.