PayPal Holdings Inc. (PYPL) is making a play for the banking world, and investors seem to like what they're hearing. The payments giant announced Tuesday that it's filed applications with the Utah Department of Financial Institutions and the Federal Deposit Insurance Corporation (FDIC) to establish PayPal Bank.

What's the Plan? PayPal Bank isn't just a vanity project. The company plans to offer interest-bearing savings accounts and small business loans, while also pursuing direct membership with U.S. card networks. That last part matters—direct network access could streamline PayPal's processing and settlement operations, potentially cutting costs and improving margins.

The news gave PayPal stock a lift even as broader markets traded in the red, suggesting investors see real value in the banking strategy despite a generally weak trading environment.

The Technical Picture: From a technical standpoint, things are mixed. PayPal is currently trading 0.3% above its 20-day simple moving average, but it remains significantly below its longer-term averages—a bearish signal that suggests the stock is still struggling to regain sustained momentum.

There's a silver lining though. The MACD indicator sits above its signal line, pointing to bullish momentum that could drive near-term upward movement. Still, traders should stay cautious given the overall weak trend.

Key levels to watch: support sits at $58.00, while resistance is at $64.00. A break below support could signal further declines, while pushing past resistance might indicate a genuine trend reversal.

The Bigger Picture: Over the past 12 months, PayPal has dropped 33.47%, reflecting both broader fintech sector challenges and company-specific headwinds. The stock is currently trading much closer to its 52-week low of $55.85 than its 52-week high of $93.25, which means there's plenty of room for recovery—if the fundamentals cooperate.

PYPL Price Action: PayPal shares were up 1.81% at $61.84 at publication time on Monday, according to market data.