Robinhood stock (HOOD) has pulled back in recent days, sliding from an intraday high of $125.25 on Sept. 8 to near $107 during Sept. 17 trading. The shares remain well below their September peak despite recovering from this week's sharp selloff, bringing technical support levels back into focus even as Robinhood Chain continues to report growing decentralized-finance activity.

At the same time, the company's second-quarter results and recent analyst revisions point to continued growth across brokerage, prediction markets and blockchain infrastructure. Four factors stand out in the analysis.

1. Strong Technical Setup

One of the central reasons cited for further recovery is the stock's technical structure. HOOD has formed a rising and broadening wedge pattern — commonly known as a megaphone — which often precedes additional gains over time. The broadening shape, by definition, reflects progressively wider price swings, which is why traders tend to read it as a sign of elevated volatility around the prevailing trend.

The stock has also held above both the 50-day and 200-day Exponential Moving Averages (EMA), a condition generally viewed as a sign that the upward trend remains intact. A drop below these averages would signal that bears have prevailed and could push the price much lower.

HOOD is also trading above the Supertrend indicator, which has stayed green in recent days. Based on this setup, the analysis suggests the stock is likely to bounce back, potentially toward this month's high of $125. A move above that level would point to more gains, potentially toward the all-time high of $153 — about 42% above the current level.

2. Robinhood Chain Growth Continues

Robinhood stock may also benefit from the ongoing expansion of Robinhood Chain, where on-chain data shows all key metrics improving. Total value locked (TVL) in its decentralized finance (DeFi) ecosystem has jumped to more than $948 million — the standard yardstick for capital deposited across a chain's DeFi protocols, and one that can be monitored directly on DefiLlama.

Most notably, the network's stablecoin supply has crossed the $1 billion milestone, making it the 14th-biggest chain by that measure — larger than popular networks such as Stellar, TON, Monad and Mantle. Stablecoin supply is widely used as a gauge of on-chain liquidity, since these dollar-pegged tokens underpin much of the trading and lending activity across DeFi. The leading stablecoins on the chain are Global Dollar (USDG), Ethena USDe (USDe) and United Stables (U).

Other metrics point in the same direction: Robinhood Chain has become the third-biggest chain by decentralized exchange (DEX) volume, handling more than $39 billion over the past 30 days — slightly below Ethereum's $42.5 billion, a comparison that gives a sense of the chain's scale in on-chain trading.

3. Core Business Keeps Growing

Despite challenges across the crypto industry, Robinhood's business continued to expand in the second quarter. Funded customers rose by 1.9 million to 28.4 million, while total assets on the platform climbed to $369 billion from $279 billion in the same quarter a year earlier — with assets growing faster than the customer base over the period.

Robinhood Markets' revenue jumped to more than $1.3 billion, up from $989 million in the year-ago period — an increase of roughly 32% — and adjusted EBITDA rose to $741 million from $549 million a year earlier, a gain of about 35%.

Revenue is expected to keep growing, supported by top initiatives such as prediction markets — venues where users can trade contracts on the outcomes of real-world events. The average analyst estimate calls for annual revenue to rise 16.3% to $5.2 billion, followed by $6.62 billion next yearn

4. Analysts Remain Bullish

Most analysts maintain a bullish stance on HOOD. Cantor Fitzgerald's Ramsey El-Assal recently reiterated an overweight rating, while Deutsche Bank raised its price target from $136 to $138. Citizens' Devin Ryan upgraded the stock to market outperform, lifting his target from $155 to $165 — both targets sitting above the roughly $107 level the stock traded near on Sept. 17.

Other bullish analysts include teams at Mizuho, Benchmark, Bernstein and Loop Capital. Most cite the company's ongoing growth, the diversification of its business, and the continued rise in stock and options trading volumes.

This article is for informational purposes only and does not constitute financial or investment advice. Technical indicators, analyst price targets and blockchain metrics do not guarantee future stock performance.

This article originally appeared on The Market Periodical.