PONS consolidates below critical $0.25 level – Bears continue to dominate

Non-custodial token launchpad Pons [PONS] saw a slight price bounce after the previous week’s sell-off. The total crypto market cap has increased by 0.89% in 24 hours, and PONS has bounced by the same 0.89%.

Its Open Interest saw a modest 0.84% increase too, but Spot CVD saw a noticeable uptick over the weekend. The positive Funding Rates showed that market participants remained bullishly biased, and the minor price bounce was not actively shorted by the majority.

Here’s what PONS traders can expect next.

PONS bounce shows a slowing bearish trend

On the 1-day chart, the PONS token price has established a range between $0.218 and $0.298. These two levels marked the latest bearish swing move on this timeframe, but a daily session close outside either level has not occurred.

Such a close is needed to either continue the downtrend or signal a change in character and a potential bullish trend shift.

Therefore, long-term investors and swing traders can wait for these conditions to be fulfilled before trading in the market’s next direction.

Alternatively, traders can focus on the short-term range and look for opportunities within it.

Traders’ call to action – Bullish bounce might falter

Looking to buy near the range lows and expecting a mean reversal can be a good idea, but the PONS demand was weak. The OBV was struggling to push towards local highs, signaling slow buying pressure.

The $0.25-$0.27 supply zone overhead could reject PONS bulls’ efforts. Traders can maintain a bearish bias for now. An influx of demand and an OBV push past local highs, combined with a breakout above the range, would suggest an uptrend was beginning to take shape.

Final Summary

• Pons’ weekend price action looked hopeful as the altcoin reacted well from the $0.218 local low.
• A lack of demand could spell trouble for the bulls if they are to succeed in shifting the trend bullishly.