Can Robinhood (HOOD) Continue To Benefit From Bitcoin Rally and Trading?
$Robinhood(HOOD)$ has seen their shares rise 3.4% to $9.87 premarket after it reports trading volumes for November. It continue to have a nice percent change of 10.26% to close above $10.50.
Their November crypto notional trading volumes 75% above October 2023 levels. Bitcoin hit a a 20-month high on Monday, briefly surpassing $42,000, fueled by U.S. interest rate cut expectations and traders betting regulators will approve exchange-traded spot bitcoin funds.
In this article, I would like to look at the technical indicators to see if Robinhood has potential for more upside as Bitcoin hit above $43,000 at the time of writing.
Technical Indicators - Simple Moving Average (SMA) - 50-day MA (Moving Average) Period
HOOD is trading close to 50 and 200 day moving average, there is no clear indication whether there is any indication of higher move.
They might benefit from increased crypto trading from retail investors, as Bitcoin keep moving above $42,000.
Technical Indicators - Average Directional Index (ADX)
ADX looks promising to be between 20 and 40 indicating a developing trend, with +DI above -DI in a good wide margin, this suggest that HOOD might have some upside coming its way.
I personally see that as long as Bitcoin continue to trend upwards, there are chances that HOOD will move higher.
Technical Indicators - Relative Strength Index (RSI)
RSI is touching into overbought region, with HOOD announcing crypto notional trading volumes up 75% from October, I believe this number should be higher in December.
There is a chance that traders and investors would be looking at LONG position for HOOD.
Summary
Based on the data I have gathered, it looks like HOOD benefit from higher crypto trading from its platform, there will be more trading activities to be expected in December.
This might be beneficial and set the path to Bitcoin halving as more investors would be benefitting from less Bitcoin mined, but higher Bitcoin price.
While market is anticipating Fed’s rate cut in 2024, how this will affect Robinhood’s interest income coming down, but it could also mean higher trading volumes, as well.
Appreciate if you could share your thoughts in the comment section whether you think Robinhood would continue to benefit from Bitcoin rally and move upside.
@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
1) HOOD's expanding to UK market has projected to help lifting its 2024 revenue.
2) MDM Wood keeps acquiring HOOD stock is another factor.
3) To make HOOD flies, it must be put back to the MEME traders list. All day traders rush in FOMO.
These are my thoughts 🤔
I think the the upside potential is fixed, so still need to be careful.
I feel as if it's not the time to buy it yet.
More liquidity is never a bad thing.
The question is when to buy
Bitcoin Rally can be a good boost