PONS bounced back by 0.89%, but weak demand hinders reversal

PONS rebounded after last week's sell-off: the token gained 0.89% in 24 hours, exactly matching the overall cryptocurrency market capitalization. Open interest rose by a modest 0.84%, but Spot CVD noticeably increased over the weekend. Positive funding rates indicate that market participants maintain a bullish sentiment, and the minor rebound did not trigger active shorting.

Range and Levels

On the daily chart, PONS remains within the range of 0.218–0.298. These two levels mark the last bearish impulse on the timeframe, but there has been no daily close outside either of them. Such a close is needed to either continue the decline or signal a change in character and a possible transition to growth. Long-term investors and swing traders may wait for these conditions to be met, while short-term traders can work within the range.

What Holds Back the Bulls

Buying at the lower boundary of the range in anticipation of a return to the mean may be a reasonable idea, but demand for PONS is weak. OBV struggles to move towards local highs, indicating slow buyer pressure. The supply zone of 0.25–0.27 above the price may thwart bulls' attempts, so traders may still maintain a bearish sentiment. An influx of demand, an OBV rise above local highs, and a breakout of the range upwards will indicate the start of an uptrend.

Over the weekend, the token responded well from the local low of $0.218 – this looked promising. However, if demand does not increase, it will be difficult for the bulls to reverse the trend.