Pons [PONS] extended its bearish streak with a 12.3% daily decline at press time, as shrinking Robinhood Chain activity and weaker ecosystem demand intensified.
Reportedly, the daily token launches on the Robinhood Chain collapsed from approximately 36,000 at their peak to around 6,000. This rapid decline represented a major reduced activity supporting PONS’s underlying utility.
At the time of writing, the token traded around $0.56, extending its retreat from previous highs. However, market participants remained active throughout the decline, the token’s trading volume climbing 24.23% to roughly $51.5 million over the 24-hour period.
More importantly, the shrinking launch activity seemingly reduced one crucial channel supporting PONS utility. Besides, pressure from declining activity was also reflected in the platform’s revenue and buyback mechanism.
Revenue slump weakens the buyback engine
PONS crypto’s revenue contracted 88% from its early-September peak as the Robinhood Chain activity deteriorated. Besides, the daily PONS buybacks also collapsed from above $1 million to nearly $200,000.
The rapid reduction weakened the recurring source of demand within the economic model of the token. The fewer buybacks implied that the platform created substantially less purchasing support during the broader price contraction.
Notably, the declining revenue further accompanied the reduction in launches, connecting weaker market activity with reduced token purchases. Ultimately, this latest revenue decline introduced another challenge for buyers attempting to establish a durable price recovery.
Therefore, the token entered its next technical test as the fundamental demand conditions remained substantially weaker than the previous September’s levels.
Triangle support meets growing bearish pressure
On the daily timeframe chart, PONS reached the rising boundary of its symmetrical triangle confinement after losing the $0.5808 horizontal support. The latest daily candle touched the $0.5216 level before price recovered toward $0.5447 at reporting time.
Importantly, instead of confirming a breakdown immediately, the price remained around the ascending trendline of the broader triangle structure.
At the time of writing, the MACD indicator, however, strengthened the bearish case, remaining beneath its signal line. Besides, the negative histogram also expanded during the price decline, suggesting increasing downside pressure.
Furthermore, the RSI indicator also declined to 48.61, crossing the neutral 50 threshold during the support test. Eventually, a decisive loss of the triangle structure could expose the broader $0.50 region.
However, preserving the technical structure could favor a price reversal toward the $0.5808 horizontal resistance before the bulls could push higher.
Notably, the liquidity position outlined below provided yet another reason to keep a close eye on a recovery attempt.
Overhead liquidity offers a recovery path
The Binance 24-hour Liquidation Heatmap had concentrated substantial liquidity above PONS prevailing market value following its rapid decline. Notably, nearby liquidity bands appeared around the $0.55 and $0.56 area, directly above the current price region.
Furthermore, additional larger clusters remained visible higher around the $0.60 to $0.62 zone. Besides, another dense liquidation area remained near the $0.65 area, extending the potential upside path after a price reversal.
These overhead positions could therefore pull the price so long as buyers successfully defend the triangle’s rising support.
Importantly, PONS would first need to reclaim the $0.5808 level, which had already shifted into a crucial recovery threshold.
Strongly clearing that level could open access towards the heavier 0.60–0.62 liquidation bands. Continued buying could subsequently place the $0.65 cluster within reach.
Conclusively, PONS could only recover towards higher levels on the condition that the triangle support survives. Otherwise, the fundamentals and bearish technical pressure could expose the $0.50 area.
Final Summary
- PONS faced weaker demand as revenue, token launches, and daily buybacks declined sharply.
- PONS could reverse only if triangle support holds, opening a move toward the upper liquidity clusters.
Be the first to comment