Robinhood (Hood) Stock Price Risks 40% Crash As Crypto Drag Outweighs Earnings

What Happened

The company also launched the public testnet for Robinhood Chain. This is an Ethereum Layer 2 network built on Arbitrum. It aims to support tokenized stocks, 24/7 trading, and DeFi tools. This is a long-term growth move, not a short-term price driver. But crypto remains a problem.

After earnings, the stock fell around 7% in extended trading. This showed that investors still see crypto as a major risk. Even strong profits and new products could not offset that weakness. Post that underwhelming crypto-specific performance, the Robinhood stock price seems to have rekindled the fears associated with a bearish pattern break.

Price action alone does not explain everything. Money flow indicators show that big investors remain cautious.

On-Balance Volume, or OBV, compares volume on up days and down days. It shows whether buyers or sellers dominate. Between September and February, OBV formed higher lows, while HOOD made lower lows. This suggested that some retail investors were still accumulating.

Market Context

The Robinhood stock price has rebounded nearly 23% since its February 5 low near $71. On the surface, this looks like a strong recovery for HOOD. The company also just posted its best financial year on record.

Robinhood delivered a strong financial performance in 2025. Full-year revenue reached about $4.5 billion, up more than 50% year over year. Net income hit nearly $1.9 billion. Q4 revenue rose 27%, and earnings per share beat expectations. Options trading, interest income, and Gold subscriptions all grew sharply.

These numbers show that the core business is improving. Robinhood is no longer dependent only on meme stocks and crypto trading. It is becoming more diversified and more stable.

Crypto revenue fell 38% year over year to about $221 million. This drop was linked to Bitcoin’s pullback and weaker trading volumes. Because crypto still contributes a large share of activity, the slowdown hurt total revenue. Q4 sales missed analyst estimates by roughly $50 million.

Markets focused on that miss.

HOOD price broke below the falling channel on February 2, triggering a near 30% breakdown. While $71 offered support, the crypto-led weakness could soon attempt to push the prices down.

One key tool is Chaikin Money Flow, or CMF. CMF combines price and volume to show whether large players are buying or selling. When it stays above zero, institutions are usually accumulating. When it stays below, they are exiting or staying away.

An Exponential Moving Average, or EMA, gives more weight to recent prices. Traders use them to judge trend strength. When short-term averages fall below long-term ones, momentum weakens.

Why It Matters

But the bigger picture tells a different story. Weak crypto activity, fading money flows, and rising technical risks suggest this rebound may not last. For now, downside pressure remains the dominant force.

Weak Money Flow and Death Cross Risk Signal Fading Confidence

Robinhood is now facing a “death cross” risk. This happens when the 50-day EMA drops below the 200-day EMA. It often signals longer-term weakness.

Two bearish crossovers already formed on January 30 and February 4. After the January signal, the stock fell nearly 30%. Now, the 50-day is again moving toward the 200-day. If this crossover confirms, downside pressure could intensify.

If crypto weakness continues, even this support may fade. Without strong demand from big wallets, retail buying alone is rarely enough to reverse a trend.

Details

Earnings Strength and Crypto Drag Are Pulling in Opposite Directions

That is why the rebound since February 5 looks fragile. It is happening inside a broader downtrend, not a new uptrend.

Right now, Robinhood’s CMF remains negative.

Even during the 23% rebound, CMF failed to reclaim the zero line. It also stayed below its falling trendline. This means that the rally lacked strong big-wallet backing.

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That makes rebounds unstable. Moving averages add another warning.

There is only one mild positive.