$PONS has two sets of numbers side by side that feel jarring: it fell 11.5% in 24 hours, yet trading volume was just 20.14 million; five days ago, on October 15, it rose less than 10%, with trading volume at 91.29 million.
Turnover on the day it rose was more than four times that of this downturn. The price was pushed up from 0.33, then slid all the way back to 0.28, giving back almost all its gains. But there was no corresponding surge in selling volume during the decline. This doesn’t look like panic selling; it looks more like the money that pushed the price up pulled out first, and no one else stepped in.
A 61% drop over 30 days and a 71% decline from ATH don’t tell us anything new on their own. The real question is where 0.28 stands right now: it reached 0.2828 on October 13, and today it touched 0.2813—two tests of nearly the same level. A pullback to the previous low on declining volume can point to two completely opposite conclusions: selling pressure is exhausted, or liquidity is drying up. To confirm the first, we’d need to see volume pick up as it reclaims 0.30, then see it move back above 0.33. For the second, a break below 0.2776 alongside trading volume returning to above 50 million would show there’s another leg down ahead.
With a market cap of 189M and daily trading volume of 20M, turnover is only just above 10%. That kind of depth can’t support a very fast reversal. On the flip side, it also means a single decent wave of buying could move the price up. I’d rather wait for volume to appear above 0.30 than try to call a bottom at 0.28.
Which do you think is more likely—declining volume means sellers are done, or that there are no buyers? If it’s the former, watch whether it can reclaim 0.33; if it’s the latter, watch whether 0.2776 holds.
Turnover on the day it rose was more than four times that of this downturn. The price was pushed up from 0.33, then slid all the way back to 0.28, giving back almost all its gains. But there was no corresponding surge in selling volume during the decline. This doesn’t look like panic selling; it looks more like the money that pushed the price up pulled out first, and no one else stepped in.
A 61% drop over 30 days and a 71% decline from ATH don’t tell us anything new on their own. The real question is where 0.28 stands right now: it reached 0.2828 on October 13, and today it touched 0.2813—two tests of nearly the same level. A pullback to the previous low on declining volume can point to two completely opposite conclusions: selling pressure is exhausted, or liquidity is drying up. To confirm the first, we’d need to see volume pick up as it reclaims 0.30, then see it move back above 0.33. For the second, a break below 0.2776 alongside trading volume returning to above 50 million would show there’s another leg down ahead.
With a market cap of 189M and daily trading volume of 20M, turnover is only just above 10%. That kind of depth can’t support a very fast reversal. On the flip side, it also means a single decent wave of buying could move the price up. I’d rather wait for volume to appear above 0.30 than try to call a bottom at 0.28.
Which do you think is more likely—declining volume means sellers are done, or that there are no buyers? If it’s the former, watch whether it can reclaim 0.33; if it’s the latter, watch whether 0.2776 holds.