PONS rallies 10% despite net selling: Can bullish traders hold the line?
Could forced short closures supply the buying pressure that PONS’s latest trading flows lacked?
Pons [PONS] rallied more than 10% over the past 24 hours, even as selling pressure accompanied the move.
Sellers remained active across perpetual and spot markets, potentially threatening the gains as the broader crypto market pulled back.
Over the same period, PONS recorded approximately −$7.89 million in perpetual Net Inflow. This metric tracks buying volume minus selling volume, with negative readings indicating that selling outweighed buying.
The spot market showed a similar imbalance. Its 24-hour Net Inflow stood at −$1.64 million, alongside $10.64 million in buying-side Inflow. These figures suggested net selling, although they could not establish whether sellers were taking profits.
If demand failed to absorb that pressure, PONS could surrender some of its recent gains.
Why are PONS traders still leaning bullish?
Even so, the Funding Rate and Open Interest offered a more encouraging picture of derivatives positioning.
Funding payments help keep perpetual prices aligned with spot prices. A positive Funding Rate means longs pay shorts, generally reflecting a bullish tilt. At press time, PONS recorded a positive Funding Rate of 0.0032%.
Meanwhile, Open Interest rose roughly 6% to $175.09 million over the same period. Open Interest measures the value of outstanding derivatives contracts, rather than available capital waiting to enter the market.
Its growth indicated that outstanding exposure had expanded.
Alongside positive funding, this suggested continued appetite for bullish positioning, without establishing that all new positions were longs. That left PONS with a tug-of-war: traders maintained bullish exposure while selling volume outweighed buying volume.
Could liquidations extend the PONS rally?
PONS could still advance in the near term despite the selling pressure.
The Liquidation Heatmap showed a greater concentration of estimated liquidation levels above the price. These represent potential forced closures of leveraged positions, rather than ordinary resting buy or sell orders.
If PONS climbed into those zones, Short Liquidations could add buying pressure and accelerate the move.
However, their concentration alone could not guarantee that the price would reach them. Lower liquidation clusters also left room for volatility if sellers gained control.
For now, bullish positioning supported the upside case, while negative Net Inflows challenged the rally’s buying support. Whether fresh demand could absorb the selling remained the more immediate test.
Final Summary
- PONS rallied more than 10%, despite negative Net Inflows across spot and perpetual markets.
- Positive funding and rising Open Interest supported bullish positioning, while overhead liquidation levels offered a potential upside catalyst.
