Robinhood stock has fallen in recent days, rising from a high of $150 this month to a current $115. This forms a risky pattern and points to further declines in the coming weeks as the crypto market continues to retreat.
Robinhood stock faces potential risks going forward
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Robinhood stock has been on a roll this year, soaring from a year-to-date low of $30 to a record high of $155. The surge comes as the company’s business continues to grow amid rising volatility and demand in the options market.
The latest results showed that the business continues to improve, with user numbers, revenue and profitability accelerating.
Robinhood ended last quarter with more than 3.88 million gold subscribers and more than 26.8 million funded customers. Value on the company’s platform soared to more than $388 billion, up from $152 billion a year ago.
This growth translated into increased revenue and profitability. Net revenue jumped from $637 million in Q3 2024 to $1.27 billion in Q3 2025, its best quarter in years. Additionally, net income increased to more than $556 million.
Robinhood has benefited from numerous tailwinds. For example, more Americans now trade options than ever before. This growth has made this sector a top performer.
The company also continues to innovate, such as the use of blockchain technology. The company has already started offering hundreds of tokenized stocks and cryptocurrencies to European customers. We are also working on our own layer 2 blockchain network.
Additionally, the company has become a major player in the cryptocurrency industry. The company’s business here is strong even as other companies such as Coinbase, Bullish, and Gemini are struggling. Its cryptocurrency trading volume increased 458% year over year, primarily due to the acquisition of Bitstamp.
Still, Robinhood stock faces three main risks. First, the company is highly valued, with a forward P/E of 60, well above the sector median of 11. Non-GAAPPER is 52, also above the sector median of 10.
Second, the company’s crypto business may face headwinds as the crypto market crash accelerates. Historically, bear markets in cryptocurrencies lead to a decline in trading volumes and revenues for industry companies.
HOOD stock price analysis
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HOOD Stock Price Chart |Source: TradingView
Another big risk facing HOOD stock is that the stock is forming a double top pattern at $150. This pattern consists of two peaks and a neckline. In this case, the neckline would be the lowest level on October 22nd, which is $120.
The stock also moved to the Murray Math Line Tools Strong, Pivot, and Reverse levels at $112.8. The 50-day and 100-day exponential moving averages (EMAs) are also below.
HOOD stock is trading below the supertrend indicator, indicating that the bears continue to be in control for now.
At the same time, the Relative Strength Index (RSI) and MACD indicators continue to decline. Therefore, by measuring the depth of the double top pattern and projecting it from the neckline, the most likely HOOD stock price prediction is $96.
