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- 1 Robinhood’s board approved a plan to purchase FTX’s share, amounting to more than 7% stake.
- 2 The stock prices have moved in bearish influence since the FTX collapse.
- 3 Robinhood stock prices shed 4.96% in the intraday session.
Robinhood Markets Inc. (NASDAQ: HOOD) is a platform that develops financial services. The company has pioneered commission-free trading in the US listed stocks and exchange traded funds (ETFs), as well as related options and American depository receipts (ADRs), and crypto via subsidiaries.
The trading platform has unveiled its January operating data, which reflected rebounding data. The news revealed to investors Robinhood’s Q4 revenue from all sources to opt for the down town road. The company revealed trading volumes to move up on a month-over-month basis spanning over all options. The online agent also witnessed an increase in its assets.
FTX melts over Robinhood
Robinhood stock prices could take support from this momentum. Robinhood was exposed to FTX fiasco, after the bankrupt crypto exchange acquired a 7.6% stake in the online broker via a holding company. The company reached out to the Department of Justice (DoJ) to repurchase those shares.
The shares are worth $575 million and amounts to 7.6% stake in the company. Earlier this year, The DoJ seized the shares as possible payback for the fraud victims. The CEO of Robinhood, Vladimir Tenev said, if the repurchase is successful, it may provide the shareholders some relief.
Although many attributed the bears in Robinhood stock prices to the FTX bankruptcy, HOOD shares were in doldrums long before the filing. The prices fell to about 18% from the IPO price of $38 per share.
Robinhood Stock Price Action
Robinhood stock prices were influenced by the bears after the FTX bankruptcy. The prices fell by about 24% since then. The volume shows minimal volatility and signals non-responsive investors. The prices shed more when the Q4 earnings rolled out.
The RSI falls below the half line to show sellers’ dominance and the ongoing down trend. The MACD records ascending seller bars while forming a negative cross. The indicators show bearish signs, stronger after the FTX fiasco.
Conclusion
Robinhood stock prices are currently in a downtrend and shedding per cents that may amplify the bearish trend. The holder of HOOD stock can watch for the support near $9.00 and trace the price reversal.
Technical levels
Support levels: $9.00 and $8.00
Resistance levels: $11.05 and $12.60
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
