Head-to-Head With Coinbase. Robinhood Launches Own Public Chain, Sending Stock Surging 8%, Is the $110 Make-or-Break Line About to Be Broken?

TradingKey - Robinhood unleashes multiple positive catalysts to ignite its stock price, with potential to rise further and break through the key resistance level of $110.

On July 1, Eastern Time, fueled by positive news regarding its Web3 transformation and global expansion, Robinhood ( HOOD) shares surged 8.35%, touching an intraday high of $109.53 before closing at $108.65, just a stone's throw away from the critical $110 resistance level. Once Robinhood breaks through this barrier, its upside potential will be fully unlocked. But how likely is this to occur?

Robinhood dropped a bombshell at its London product launch event, officially launching the mainnet of its self-developed Layer 2 public chain, 'Robinhood Chain.' This move is seen by Wall Street as a strategic strike targeting the core territory of Coinbase ( COIN )'s core business. Over the past two years, Coinbase has generated massive on-chain transaction fees from its Layer 2 network, 'Base,' successfully locking a large volume of retail investors into its Web3 ecosystem.

Unlike the Base chain, which initially grew on the back of meme coins, Robinhood Chain is a Layer 2 public chain designed specifically for the tokenization of real-world assets (RWA). On its launch day, Robinhood Chain saw decentralized exchange giant Uniswap ( UNI) deploy a dedicated Automated Market Maker (AMM) to provide public liquidity. Furthermore, it deeply integrates Chainlink ( LINK )'s oracle with BitGo ( BTGO )'s custody technology, directly targeting institutional capital and tokenized traditional assets that require strict regulatory compliance.

On the day the Robinhood Chain mainnet went live, Robinhood concurrently launched perpetual contracts pegged to gold, crude oil, and foreign exchange, as well as tokenized stock trading in the European market, with native wallet support for Robinhood Chain. This seamless integration of traditional finance (TradFi) and decentralized finance (DeFi) represents a frontier that Coinbase has yet to fully bridge.

In addition, Robinhood introduced AI agent trading for cryptocurrencies in the U.S. market. This feature allows eligible U.S. retail investors to connect their own AI models with Robinhood's data feeds, enabling AI agents to scan the market and execute strategies 24/7. This undoubtedly establishes a generational leap in retail trading tools.

With Robinhood Chain at its core, Robinhood's offering of various products and services aims to capture greater market share and drive higher revenue—a strategy well-received by the market. Following the launch event, investment bank BTIG reiterated its Buy rating on Robinhood and set a price target of $125.

From a technical analysis perspective, Robinhood's stock price is facing a hurdle at $110. A breakout could fuel a 27% rally to $140, a level that represents the peak of last December's rebound. If it fails to break through, the stock may pull back to around $90. In the coming days, as long as the broader market stabilizes, there is a strong probability that Robinhood will decisively breach this critical $110 threshold, ushering in a new wave of valuation premium.

Robinhood stock chart, Source: TradingView