Litecoin (LTC) price is trading almost unchanged on the day after the digital asset traded in a volatile manner during the Asian trading session.
Fundamental analysis: PayPal says it will not invest cash in crypto
PayPal, which also enables payments as Litecoin, said it does not plan to invest in cryptocurrencies. However, the payments company said the digital wallet space offers great opportunities.
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John Rainey, PayPal’s chief financial officer said the company is interested in services that crypto platforms offer.
“We’re not going to invest corporate cash, probably, in sort of financial assets like that,” Rainey said, “but we want to capitalize on this growth opportunity that’s in front of us.”
PayPal admitted that it believes the shift to digital currencies is certain.
Back in October, the payments giant announced its support for a number of cryptocurrencies including Bitcoin, Ethereum, Bitcoin Cash and Litecoin. Since then, PayPal users are able to buy, hold and sell cryptocurrencies and use them to make purchases in PayPal’s retail network.
The company announced that buying, selling and holding of these cryptocurrencies will soon become available in the United Kingdom as well.
PayPal’s mobile wallet Venmo is set to introduce the same services in the first half of this year, which will also be available in international markets.
Rainey added that PayPal wants to back companies that provide assets which are complementary to its platform.
“The types of services that we’re providing, like buy now, pay later [and] crypto as an example — even offline QR code — those are the types of things that we want to continue to invest in, be it organically or even inorganically when we see opportunities in the ecosystem,” Rainey said.
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Technical analysis: Quick rebound
Litecoin price initially fell over 10% overnight to test the key short-term support around $185. This move came after the digital asset gaiend 41.7% last week.
However, buyers saw this as a great opportunity to buy Litecoin at a solid risk/reward level, resulting in a quick rebound to levels above $200. The long-term target for the buyers remains an area around $270, where the 61.8% of the big retracement comes.
Summary
PayPal said it does not intend to invest cash in cryptocurrencies, though it wants to capitalize on opportunities offered by the digital wallet space. On the other hand, Litecoin buyers used the opportunity to get on the long side of the market at prices below $200.