Buy or sell HOOD dip?
Robinhood’s stock price is near an all-time low as the company’s recovery fades. HOOD is trading at $11.25, around 86% below its all-time high. Its market capitalization has collapsed to around $9.7 billion. At its peak, the company was valued at over $40 billion.
Robinhood is a financial platform that allows people to buy cryptocurrencies and other financial assets like stocks and options. The company revolutionized the industry by eliminating commissions and introducing the concept of gamification to trading.
Robinhood did well at the start of 2021 as most Americans received their stimulus checks from the government. Stock and cryptocurrency prices were skyrocketing and the concept of Wall Street Bets drove most people into the market.
Times have changed and Robinhood is now less committed given that the government hasn’t offered any stimulus lately. Also, many people who participated in last year’s euphoria lost money and stayed out of the market.
On Friday, Robinhood launched a new crypto wallet to around 2 million people who were on its watchlist. The new app allows users to store their cryptocurrencies and tip makers on social media. They can also pay non-fungible tokens (NFT) for free using the app.
However, a first look at the app showed it had some serious limitations that could discourage users. For example, the number of coins on the platform is significantly lower than other companies like Coinbase. It only offers Bitcoin, Bitcoin Cash, Bitcoin SV, Dogecoin, ETH, ETCM, and LTC. This explains why HOOD’s stock price fell after the launch.
Robinhood’s share price also fell as analysts continued to lower their targets for the stock. For example, this month Goldman Sachs lowered its target from $15 to $13. Deutsche Bank and JMP Securities also lowered their target.
Robinhood stock price forecast
The daily chart shows that HOOD’s stock price has been in a strong downtrend over the past few months. The stock remains below the 25-day and 50-day moving averages, signaling that the bears are in complete control.
The stock also fell below the important resistance level at $15.40, which was the highest point on February 7 and March 22.
The MACD also moved slightly below the neutral level. Therefore, it is likely that the Robinhood stock price will continue to decline in the coming days. A drop below $10 will lead to further declines to around $8.