One of the best performers in the current speculative market is Pons (PONS), whose valuation momentarily surpassed $500 million after an almost vertical price expansion. Given where PONS traded just a few weeks ago, the move is especially noteworthy.
Pons clears key price ranges
PONS then quickly cleared $0.10, $0.20, and $0.40 before reaching its most recent local peak at roughly $0.54. PONS's rise to the top launchpad token on Robinhood's graduated-token board is one of the primary causes of the attention.
According to the launchpad data, PONS is firmly in the lead, far ahead of Thinking Cat at about $20.45 million and other graduated tokens at less than $20 million. Because of this ranking, PONS is much more visible as capital shifts to launchpad assets that are successful. An additional layer is being added to the rally by speculative positioning.
Traders go long
After depositing $54,000 into Aster DEX, one tracked trader, 0xe3bF, opened a 4x leveraged long position on 447,135 PONS, valued at about $226,000. The position then earned about $8,600 in unrealized profit, or about 15%. The trade shows how aggressively traders are positioning around PONS as momentum picks up speed, but it does not explain a rally of this size on its own.
On the other hand, the token has reached extreme conditions technically. The daily RSI is currently close to 95, well above the traditional overbought level of 70. With a 20-day average of about $0.18 and a 50-day average of about $0.084, PONS also trades significantly above its short-term moving averages.
This allows for more upside as long as momentum is maintained, but it also leaves the current price with very little established support. $0.50–$0.55 is the immediate challenge. A sustained breakout might push the price-discovery phase closer to $0.60.
However, considering how quickly PONS reached its current valuation, failing to hold $0.45 could result in an exceptionally severe correction.
