Robinhood (HOOD) Stock Gains Amid Crypto Wallet Test
Shares in Robinhood Markets, Inc. (HOOD) jumped nearly 11% Wednesday after the commission-free brokerage firm said it will begin testing crypto wallets with select clients next month. If all goes to plan, it hopes to undergo a broader rollout in early 2022, which would allow customers to transfer selected digital currencies in and out of the Robinhood app.
Despite Robinhood expanding its crypto offerings, recently listed digital currency exchange Coinbase Global, Inc. (COIN) also added gains Wednesday as investors shrugged off concerns of increasing competition in the rapidly growing crypto trading and investing space.
Let's take a closer look at the two stocks and use technical analysis to unearth possible trading plays.
The company—best known for its commission-free stock trading—currently offers cryptocurrency trading in leading coins—such as Bitcoin, Ethereum, Litecoin, and Dogecoin—but it doesn't allow users to transfer their digital assets to or from its platform. Adding a wallet would help Robinhood onboard clients seeking an all-in-one solution for investing in crypto, as opposed to those just speculating on price direction. As of Sept. 23, 2021, Robinhood stock has a market value nearing $40 billion and is trading 23% above its initial public offering (IPO) price of $38. In the past month, the shares have gained around 10%.
After surging into the low $80s several weeks after going public, the Robinhood share price gave up about half of those gains to trade just below $40 by early September. However, yesterday's announcement may rejuvenate the bulls, with the stock breaking above two weeks of consolidation on increasing volume. Those who buy at these levels should look for a retest of the all-time high at $85
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