The PONS token has declined over 10% in the past 24 hours, erasing its weekly gains amid a broader market pullback. However, specific factors are accelerating the loss, including a large whale sale and a significant drop in network activity. Data shows a whale sold approximately 5.34 million PONS for 1,315 Ethereum (ETH), worth $3.6 million, realizing a loss of $578K. Network revenue has also plummeted from a peak of $11.24 million in early September to just $2.37 million, a fivefold decrease in 19 days. This has reduced the token’s burn rate dramatically.
The PONS token has experienced a sharp decline, falling over 10% in the last 24 hours and turning its weekly performance negative. This drop coincides with a broader pause in the crypto market’s uptrend that began in August.
According to Lookonchain, a whale sold approximately 5.34 million PONS tokens for 1,315 Ethereum (ETH) valued at $3.6 million, taking a loss of $578K. The selling was executed in batches of 500,000 tokens on Uniswap and KyberSwap decentralized exchanges. This capital flight suggests whales are rotating into more stable assets like Ethereum.
Network activity for the launchpad is also contributing to the decline. Revenue dropped sharply from a peak of $11.24 million in early September to $2.37 million, a fivefold decrease in just 19 days. This low network activity has reduced the token’s burn rate, with only 440,000 PONS permanently removed from circulation in the past 24 hours.
Technically, PONS is trading within a large triangle pattern and appears headed toward the $0.55 support zone. The token is also decoupling from Robinhood (HOOD), as the Correlation Coefficient indicator has dropped to 0.38. While the Relative Strength Index (RSI) divergence has turned bullish, its reading of 47 remains below the neutral level, indicating selling pressure has not yet exhausted. Historical data from the past two weeks suggests a potential surge from $0.55, with a break past the triangle pattern exposing the $1 mark. A loss of the $0.55 support increases downside risk to the $0.34–$0.37 range.
