PONS Token Plunges 71% from ATH as Robinhood Chain Activity Fades

Introduction

PONS, a token launched on Robinhood Chain, has seen its price drop by 71% from its all-time high, amid dwindling network activity and a lack of usage on the Layer 2 chain. The token's value has been affected by the fading activity on the chain, which has led to a decrease in fees and DEX volumes.

Technical Analysis

The Choppiness Index declined to 36.86, confirming strong bearish strength. The Stochastic Momentum Index was in oversold territory at negative 82, showing that weakness could continue in the short term. If the Fibonacci Retracement levels at $0.229 and $0.121 fail, PONS could see a full retracement.

Market Context

Most tokens launched on Robinhood Chain, like Cash Cat, Artificial Inu, and BONER, were in huge drawdowns of more than 10%. This synchronization across the chain was evident in fees and DEX volumes. Fees fell from a maximum value of $11.42 million to $595K, a 95% decline. Similarly, average daily DEX volumes plunged from $173 million to $8.95 million.

Conclusion

Despite the low usage, Robinhood CEO Vlad Tenev was fully supportive of increasing the chain's usage. Investors started to buy the dip, as seen in the Long/Short ratio across exchanges. Retailers, whales, and smart money were bullish with the ratio above 1.41. However, the whale position on OKX was extremely bearish with a ratio of 0.70, while on Binance it was 1.99. This resulted in the OI-Weighted Funding Rate turning green over the 30-minute timeframe, indicating genuine buying activity even with the price declining.