Robinhood stock extended its decline on July 28 as investors weighed regulatory uncertainty, weaker trading activity and the company’s upcoming second-quarter earnings.
Summary
- HOOD fell 3.68% to $92.13, extending its decline from the July peak near $120.
- Analysts expect Robinhood to report $1.24 billion to $1.28 billion in second-quarter revenue.
- The stock has fallen below its 50-day moving average and $95 Fibonacci support.
- $89.13 is the next support level, while earnings could determine HOOD’s short-term direction.
Robinhood stock extends its July decline
Robinhood Markets (HOOD) traded around $92.13 on July 28, down 3.68% during the session. The stock opened at $92.67, reached an intraday high of $93.87, and fell as low as $88.21 before recovering part of the loss.
The latest decline left HOOD about 23% below its July peak near $120. Shares had rallied sharply from approximately $70 in late April before reversing course during the second half of July.
Uncertainty surrounding US crypto legislation has added pressure across crypto-linked stocks. The pullback also comes before Robinhood reports its second-quarter results after the market closes on July 29.
Investor attention will center on whether crypto, equity, and options trading activity remained strong enough to support transaction-based revenue. Trading volumes weakened during the bearish market conditions seen between April and June, potentially limiting growth in Robinhood’s core brokerage operations.
Robinhood Chain has also failed to translate into immediate stock gains. HOOD traded near $100 when the blockchain was unveiled on July 1 but has since fallen below $93.
Robinhood earnings could show 24% revenue growth
Wall Street analysts expect Robinhood to report between $1.24 billion and $1.28 billion in second-quarter revenue. Reaching the lower end of that range would represent growth of roughly 25% from the $989 million reported for the same quarter in 2025.
The results will follow a weaker-than-expected first quarter. Robinhood reported $1.07 billion in revenue for the period, below analysts’ estimate of $1.14 billion. Earnings per share reached $0.38, also missing the expected $0.40.
That earlier miss triggered an over 10% decline in HOOD stock. A similar reaction remains possible if second-quarter revenue falls below Wall Street forecasts, particularly now that the share price is approaching several technical support levels.
Prediction markets could offset some weakness in conventional trading volumes. Bernstein estimates that the business could generate $586 million in revenue for Robinhood during 2026. The firm has set a $160 target for HOOD, although achieving that valuation would depend on continued growth and regulatory conditions.
Robinhood will report alongside Microsoft and Meta, making July 29 an important earnings session for US technology stocks. Guidance for the rest of 2026 may be as important as the reported revenue figure because it could reveal whether recent market weakness has affected customer activity.
HOOD price breaks below the 50-day average
The daily chart shows that Robinhood stock has fallen below the 50% Fibonacci retracement level at $95.03. HOOD has also slipped under its 50-day simple moving average at $95.93, indicating that short-term momentum has turned bearish.
Price action has broken below an ascending trendline drawn from the late-April low. That breakdown weakens the uptrend that carried HOOD from approximately $70 to its July high near $120.
The daily relative strength index has dropped to 40.33, below its signal average of 52.46. A reading below 50 points to fading momentum, but HOOD has not yet reached the conventional oversold threshold of 30.
The chart supports the broader rounded-top risk identified after the stock repeatedly failed to hold its July gains. However, the pattern does not guarantee a fall toward the earlier $74 level. HOOD must first break through several intermediate support zones.
$89 and $86 are the next HOOD support levels
Immediate support sits at the 38.2% Fibonacci retracement level of $89.13. HOOD briefly fell below that price during the July 28 session but recovered above $92, showing that buyers remain active near $89.
A daily close below $89.13 could expose the 100-day moving average at $86.24. Below that level, the next major Fibonacci support stands at $81.83, corresponding to the 23.6% retracement of the April-to-July rally.
The bearish target near $74 would become more credible only if the stock loses both $86 and $81.83. That scenario would erase most of the gains recorded since late May.
On the upside, HOOD must first reclaim the $95.03-to-$95.93 range. A move above that zone would place the psychological $100 level and the 200-day moving average at $100.13 back in focus.
Further resistance sits at $109.33, followed by the July high around $120.03. An earnings beat paired with strong guidance could support a recovery, while another miss may increase pressure on the lower support levels.
Robinhood Chain growth contrasts with HOOD weakness
Token Terminal data shows that Robinhood Chain has become the largest blockchain by the number of tokenized-stock holders. The milestone comes less than a month after Robinhood unveiled the network.
DeFiLlama data places the chain’s total value locked at $334 million, making it the 15th-largest blockchain by that measure. That adoption has not prevented HOOD from falling since the network’s launch.
For US investors, the July 29 results may help separate Robinhood’s operating performance from broader concerns surrounding crypto regulation. Revenue growth, prediction-market activity and management’s outlook will determine whether the company’s expanding blockchain business can support its valuation.
Until then, $89 remains the key downside level, while a recovery above $96 would be the first sign that selling pressure is easing.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.