HOOD Stock Forecast as Robinhood Chain Usage Surges Ahead of Earnings

Robinhood stock plunged sharply last week, reaching its lowest level since June 26. This decline occurred even though its recently launched blockchain network is performing well despite the ongoing crypto winter.

HOOD stock dropped to $94.50. It’s much lower than this month’s high of $120, with focus now shifting to its upcoming earnings.

HOOD Stock Drops as Robinhood Chain Growth Intensifies

Robinhood stock has underperformed the market this year. After peaking at $153 last year, the stock has dropped to the current $94.5. This retreat happened even after the company launched numerous products and entered the exclusive S&P 500 Index.

Robinhood Chain, its most recent product, continues growing this month. DeFiLlama data shows that it has emerged from nowhere to become the 15th chain in terms of total value locked (TVL). It has $330 million in assets spread across 111 protocols.

This number makes it bigger than other popular chains like Optimism, Cronos, Stellar, Ink, and Near Protocol. It is also bigger than Cardano, one of the most popular names in the crypto industry.

In addition to its TVL, the layer-2 network is seeing strong growth in other areas. For example, the amount of stablecoins in the network jumped to $483 million, a remarkable increase for a chain that launched recently. Most of these stablecoins are USDC tokens.

As a result, if this growth continues, Robinhood Chain will become one of the most commonly used chains in an industry expected to keep growing. Some analysts predict that stablecoins will hit $4 trillion in market capitalization by 2030.

Robinhood is also disrupting the decentralized exchange (DEX) industry. Data shows that it has become the fifth biggest chain in the DEX industry after Ethereum, BSC, Solana, and Base.

Since its launch, it has handled transactions worth over $11 billion. It’s a notable amount since Base, which has been around for years, handled $22 billion.

Robinhood aims that this chain will help it grow its positioning in the real-world asset (RWA) industry over time. It is already offering hundreds of stocks and ETFs through Arbitrum.

Robinhood to Publish Earnings This Week

In addition to the ongoing Robinhood Chain growth, the other key catalyst for the HOOD stock will be the upcoming earnings. This will provide more information about its business this year.

Robinhood’s revenue growth is expected to continue rising, helped by the soaring volume in the stock market. Traders took part in the financial market as the US-Iran war and the AI boom created opportunities.

Also, the company benefited from the recent World Cup that boosted its prediction market business. As a result, the average estimate is that its revenue rose by nearly 30% in the second quarter to $1.28 billion. The most optimistic analyst expects it to move to $1.38 billion.

Still, the main blemish in its earnings will be its crypto business. It is expected to weaken further amid the crypto winter.

Robinhood Stock Price Technical Analysis

The daily chart shows that HOOD stock has plunged in the past few days. It has moved from the monthly high of $120 to the current $94.91. This retreat happened after the stock formed a rising wedge pattern. This pattern is made up of two ascending and converging trendlines.

The stock has dropped below the 38.2% Fibonacci Retracement level and the 50-day Exponential Moving Average (EMA). Therefore, these technicals suggest that the stock may continue falling in the near term. If this happens, it may drop to the 61.8% retracement level of $85.50.

On the flip side, a move above the key resistance level of $110 will point to more gains. That’s potentially the highest point this year.