Wise share price has crawled back in the past few weeks as investors cheer the company’s growth and recent fee increase. The stock rose from a low of 288p to the current 463p. The current price is the highest it has been since April 11th. It has risen by more than 65% from the lowest point this year and is about 60% below its all-time high.
Why has Wise struggled?
Wise is a London-headquartered company that provides several services like the ability to send money around the world. It also offers a multi-currency account that enables people to save money across multiple currencies. Wise works through three key accounts: Wise Account, Wise Business, and Wise Platform.
Wise was once a darling among the top fintech companies before it went public in July 2021. After initially soaring to an all-time high of 1,177p, the shares collapsed to a low of 288p.
There are several reasons for this decline. First, the drop is in line with the performance of other popular fintech companies like Affirm, Zip, and SoFi. Most companies in the industry have seen the value of their shares tumble by more than 50% from their all-time high.
Second, there are concerns about the rising interest rates. In the UK, the Bank of England (BOE) has hiked interest rates in the past six meetings straight. In August, it delivered its biggest rate hike in about 25 years when it increased by 50 basis points.
The same trend continued in the US, where the Federal Reserve has increased rates by 225 basis points this year. As a result, there are concerns that the company will see a slower growth as demand falls.
Further, with inflation rising, investors believe that many people will postpone their remittance needs in the near term. Besides, most of them are still struggling.
Is Wise a good buy?
Still, Wise has had a strong recovery in the past few weeks. In July, the firm said that it handled over 24 billion pounds in volume. The number of customers who used its service rose to over 5 million. The volume of transfers was about 49% above where it was in the previous year. As a result, its revenue rose from 123.50 million pounds to 185.9 million pounds. The firm’s CEO said:
“In the three months to 30 June 2022 we helped 5 million active customers move more than £24 billion across borders, a 49% increase on last year. We also reached a key milestone in our mission, more than 50% of all cross-border transfers are now completed instantly.”
Meanwhile, with the cost of doing business rising, Wise decided to hike prices gradually in a bid to cover the soaring costs. The rising costs will likely have a positive impact on its margins.
Wise share price forecast

The daily chart shows that the Wise stock price made a strong recovery after it published its results a few weeks ago. As it rose, it managed to move above the important resistance level at 396p, which was the highest point on June 28th.
Wise has moved above the 25-day and 50-day moving averages. It has also moved slightly below the 23.6% Fibonacci Retracement level while the Relative Strength Index (RSI) has moved to the overbought level.
Therefore, the shares will likely keep rising as bulls target the 50% retracement level at 731p. A drop below the support level at 396p will invalidate the bullish view.