Robinhood Shares Plunge into Oversold Territory Amid Crypto Rout: Is This a Buying Opportunity?
Shares of Robinhood Markets (HOOD) faced intense selling pressure on Monday, caught in the downdraft of a significant cryptocurrency market retreat that saw Bitcoin tumble back toward its April lows below $75,000.
The stock's sharp decline has pushed its 14-day Relative Strength Index (RSI) to a deeply oversold reading near 23, a technical level that often precedes a potential short-term bounce. At current levels, HOOD is trading more than 25% below its year-to-date peak.
Yet, amid the market panic, some Wall Street voices are urging calm. Piper Sandler analyst Patrick Moley reiterated an 'Overweight' rating on the fintech giant, arguing long-term investors should view the selloff as a chance to acquire shares at a discount. His price target of $155 implies a potential upside of over 70%.
"While the end of the NFL season presents a near-term headwind for their prediction markets, upcoming events like the Winter Olympics and March Madness are poised to pick up the slack," Moley noted in a client report. He also highlighted potential catalysts, including the progress of the CLARITY Act—a crypto market structure bill—which could accelerate blockchain adoption and benefit Robinhood's token offerings.
Adding to the bullish case, Robinhood announced the launch of its Stocks and Shares ISA in the UK on Monday, a move analysts believe could meaningfully contribute to revenue growth by 2026.
The broader analyst community appears to share a cautiously optimistic stance. According to data from Barchart, the consensus rating on HOOD remains a 'Moderate Buy,' with an average price target hovering around $151.
Market Voices:
David Chen, Portfolio Manager at Horizon Capital: "This is classic market overreaction. Robinhood's core platform growth and expansion into new markets like the UK are structural stories that aren't erased by a crypto volatility spike. The oversold RSI is a signal for patient capital."
Maya Rodriguez, Retail Investor & Finance Blogger: "I've been buying the dip incrementally. The ISA launch is a smart long-term play, and regulatory clarity for crypto could be a massive tailwind. The current price feels disconnected from the platform's user engagement."
Leo Strauss, Independent Market Analyst: "Are we serious? This company's revenue is still tied to speculative retail trading and a crypto winter. Treating this plunge as a 'buying opportunity' ignores the fundamental volatility of its business model. This isn't a dip; it's a warning."
Rebecca Lin, Fintech Analyst at Aspen Research: "The negative sentiment is overdone. Robinhood is arguably the clearest pure-play on the secular trend of retail investing democratization. Their path to a 'super app' status remains intact, and current valuations are pricing in far too much pessimism."
Disclosure: The author of the original article, Wajeeh Khan, held no positions in the securities mentioned at the time of publication. This information is for educational purposes only.