HOOD Stock Price Forecast as Key Robinhood Chain Metrics Surge

HOOD stock price has jumped this year, reaching its highest point since January 15. Robinhood has jumped by 86% from its lowest level this year. This rally may continue as the stock formed a golden cross amid the rising Robinhood Chain metrics.

HOOD Stock Has Formed a Golden Cross Pattern

Technical analysis points to more gains in the coming weeks. It formed an inverted head-and-shoulders pattern, which normally leads to a bullish reversal. It moved above the neckline at $94, its highest point on April 17.

The stock has formed a golden cross pattern, which happens when the 50-day and 200-day moving averages cross each other. This pattern is one of the most bullish patterns in technical analysis. The last time this happened was in 2023 and the stock went on to surge.

Other indicators suggest that the stock will continue rising in the near term. For example, the two lines of the MACD indicator have crossed each other and continued the uptrend.

Therefore, the stock will likely continue rising, with the next target being the year-to-date high of $154, which is about 35% above the current level.

Robinhood Chain Metrics are Soaring

A key catalyst for the HOOD stock price is the recently launched Robinhood Chain, which it launched recently. This chain, which is built on Arbitrum, will have a major impact on its platform. For one, it now allows Robinhood to offer tokenized stocks to a wider audience, while taking in the chain fees.

At the same time, the chain will help it gain a market share in the decentralized finance (DeFi) industry. Data shows that the chain is doing well, with the total value locked (TVL) rising to over $95 million.

More data shows that the amount of real-world asset active market cap has jumped to over $12.75 million.

Most importantly, the amount of DEX transactions on the chain has continued rising. The network handled over $463 million in DEX volume, mostly from Uniswap. It has handled over $1.2 billion in the last three days.

To be clear: Robinhood will not make a lot of money from Robinhood Chain, which is a layer-2 network. Its chain fees stood at over $60,000 in the last 24 hours.

Robinhood Has More Bullish Catalysts

There are other reasons why HOOD stock may be on the verge of a strong bull run in the coming months.

First, there are signs that the company’s volume continued rising amid the rising demand for stocks and options after the end of the Pattern Day Trader (PDT) rule. Its most recent data showed that its equity notional trading volume jumped to $343 billion, while options contracts jumped to 274 million. Event contracts jumped to over 5.2 billion, helped by the World Cup.

Second, HOOD share price will likely do well because of its strong revenue growth, helped by its large market share among the youth. Analysts anticipate that its quarterly revenue soared by 27% to $1.25 billion. Its annual revenue is expected to come in at $5 billion. This is notable as its total revenue stood at $1.85 billion in 2021.

Additionally, there are signs that some of Robinhood’s businesses are still early. For example, Robinhood Strategies, its roboadvisor, continues to gain traction among young people who want to automate their investments.

Also, the recently launched IPO Access will see more demand as companies continue going public. The solution enables investors to buy at the IPO price and benefit after the initial surge. Robinhood Banking solution is also gaining traction as customers benefit from institutional-like solutions.