Mastercard (MA) and Visa (V) Shares Decline Due to Stablecoin Bill
Yesterday, we reported that the US Senate had passed the GENIUS stablecoin bill, which establishes a legal framework for regulating the stablecoin market. This development led to a sharp rise in the share price of cryptocurrency exchange Coinbase (COIN), while simultaneously putting pressure on Mastercard (MA) and Visa (V) shares.
According to media reports, market participants are concerned that stablecoins could pose serious competition to these companies, which earn revenue primarily from transaction fees. This serves as an example of how blockchain technology, with its low-cost features and high speed, could disrupt leaders in the traditional finance sector.
Technical Analysis of Mastercard (MA) Stock Chart
In May, MA shares formed an upward trend (shown in blue), but this was already broken by a strong downward move, accompanied by a wide bearish gap in the $575–$585 range.
Near the lower boundary of the channel, a contracting triangle pattern (shown in black) can be observed – this can be interpreted as a temporary balance between buyers and sellers. However, it didn’t last long: the widening spread of bearish candles (1 and 2) indicates growing selling pressure.
It’s possible that following a drop of over 9% from the June high, Mastercard (MA) shares might attract buyers betting on a short-term rebound. Nevertheless, in the longer term, developments related to the GENIUS bill could contribute to a continued downward trend.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Yesterday, we reported that the US Senate had passed the GENIUS stablecoin bill, which establishes a legal framework for regulating the stablecoin market. This development led to a sharp rise in the share price of cryptocurrency exchange Coinbase (COIN), while simultaneously putting pressure on Mastercard (MA) and Visa (V) shares.
According to media reports, market participants are concerned that stablecoins could pose serious competition to these companies, which earn revenue primarily from transaction fees. This serves as an example of how blockchain technology, with its low-cost features and high speed, could disrupt leaders in the traditional finance sector.
Technical Analysis of Mastercard (MA) Stock Chart
In May, MA shares formed an upward trend (shown in blue), but this was already broken by a strong downward move, accompanied by a wide bearish gap in the $575–$585 range.
Near the lower boundary of the channel, a contracting triangle pattern (shown in black) can be observed – this can be interpreted as a temporary balance between buyers and sellers. However, it didn’t last long: the widening spread of bearish candles (1 and 2) indicates growing selling pressure.
It’s possible that following a drop of over 9% from the June high, Mastercard (MA) shares might attract buyers betting on a short-term rebound. Nevertheless, in the longer term, developments related to the GENIUS bill could contribute to a continued downward trend.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.