On Friday, Robinhood Markets Inc. (NASDAQ:HOOD) shares fell by 2.7% after announcing crypto wallet sign-ups have surpassed 1 million. The company said the waitlist for the cryptocurrency feature launched earlier this month had reached an important milestone.
Robinhood is following in the footsteps of Coinbase Global Inc. (NASDAQ:COIN) and Gemini, which already offer wallets. With the crypto wallet feature, Robinhood users will be able to send cryptocurrencies to other crypto wallets directly from their wallets.
The CEO of Robinhood Markets, Vladimir Tenev said:
There [are] certain advantages that are in the technology that makes it kind of global and accessible by default and that makes it very interesting.
Time to bet on HOOD growth?
Robinhood shares have plummeted since hitting all-time highs shortly after going public in July. As a result, the stock price has pushed its P/S ratio to a more reasonable level of 21.04, considering its growth potential.
Analysts expect HOOD’s bottom line to improve by 102.70% this year before adding 98.60% next year. Therefore, the company is inching closer to the break-even point, paving the way for sustainable earnings growth.
As a result, HOOD’s plunge creates an exciting opportunity for growth investors.
Source – TradingView
Technically, Robinhood shares seem to have recently pulled back towards the trendline support of a sideways channel formation. However, the stock is far from reaching oversold conditions, thus leaving room for more downward movements.
Nonetheless, with the stock failing to breach the trendline support since August, HOOD shares could be about to bounce back towards the trendline resistance.
Therefore, investors could target potential rebounds at about $44.24, or higher at $49.14, in case of an unexpected bull run. On the other hand, $37.71 is a crucial support level, while $33.27 could provide support, in the event HOOD stock suffers a massive crash.
Rebound on the money?
In summary, although Robinhood shares are yet to reach overbought conditions, the trendline support has remained resilient for more than nine weeks.
Therefore, given HOOD’s exciting growth prospects, it could be time to bet on a rebound.
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