Robinhood slides today: Key reasons behind the decline

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Robinhood slides 11.70% to $75.59 today

Highlights

Robinhood reported record full-year 2025 revenues of $4.5 billion and Q4 revenues of $1.28 billion (up 27% YoY), but missed Wall Street expectations.
Crypto trading revenues slumped 38% year-over-year, and Robinhood launched a public testnet for its proprietary Layer 2 blockchain supporting tokenized equities and 24/7 trading on Arbitrum.
HOOD trades at $75.59, remaining well below MA-20 ($99.28), MA-50 ($113.16), and MA-200 ($105.42), with technicals signaling a sustained bearish trend and likely further declines.

Revenue miss and crypto slump offset record sales and leadership change

Robinhood reported record full-year revenues of $4.5 billion for 2025 and fourth quarter revenues of $1.28 billion, reflecting a 27% year-over-year increase, but still missed Wall Street expectations. The company posted Q4 earnings per share of $0.66 and named Shiv Verma as its new Chief Financial Officer, effective February 6, 2026. Crypto trading revenues dropped by 38% compared to the previous year, while Robinhood also announced the launch of a public testnet for its proprietary Layer 2 blockchain, aimed at supporting tokenized equities and 24/7 trading on Ethereum’s Arbitrum technology.

Anton Kharitonov, expert at Traders Union, points out that Robinhood is trading far below all key moving averages, signaling persistent downside risk. He sees the selloff intensifying after a revenue miss and a sharp fall in crypto trading revenue. Technical indicators, from MACD to RSI, confirm that sellers remain firmly in control. Kharitonov notes the recent 11.70% daily drop and warns that the gap-down reflects weak sentiment and structural vulnerability. "Without a strong catalyst or reversal above $98.11, the path of least resistance for HOOD is downward," he says.

Viktoras Karapetjanc, expert at Traders Union, highlights Robinhood's 27% year-over-year revenue growth and new leadership as fresh opportunities for long-term positioning. He believes the launch of the blockchain testnet and expanded trading hours support a bullish structural case. Karapetjanc sees the current weakness as a setup for forward-looking investors, especially if innovation gains traction. He maintains that institutional interest and global trading trends will strengthen Robinhood's market role. "I expect further growth, as recent developments enhance the platform’s prospects despite current volatility," he asserts.

Parshwa Turakhiya, analyst, observes that the market is punishing HOOD on immediate sentiment, with sharp intraday volatility and oversold technicals. He notes that while momentum and volume dynamics remain weak, the divergence in stochastic signals could open up short-lived rebound trades if volatility persists. Turakhiya suggests that risk-aware traders might find range-bound setups appealing below $74.33. "Short-term sentiment points to more downside, but intraday volatility could offer tactical opportunities for nimble traders," he comments.

Bearish signals deepen as oversold readings meet divergent momentum

Momentum signals are decisively bearish, with MACD and ADX both indicating a continued downtrend. RSI (34.68), CCI (–81.38), and the majority of stochastic readings reflect a move into oversold territory, though Stoch RSI on the daily chart remains overbought, highlighting some divergence in signals. BBP is sharply negative, suggesting sellers continue to dominate intraday momentum. The daily chart shows a steep drop of 11.70%, opening significantly lower than the previous close (gap down from $85.60 to $78.45), and the current price is near today’s low of $74.33, reflecting high intraday volatility and persistent pressure since the open. The Awesome Oscillator showing neutrality does not counter the prevailing bearish tone.

Previously it was reported that Robinhood Markets Inc is trading sharply below all major moving averages with pronounced seller control, as weakness is confirmed by negative momentum indicators including the MACD and oversold readings on the RSI and CCI. Immediate resistance remains at the Ichimoku Kijun level, while a limited probability of rebound suggests the price will likely continue trending sideways or lower within the $72–$80 range.

Source of Data: HOOD Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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