POND Technical Analysis: Falling Channel Retest Warns Death Spiral

Key technical points:

Past Performance of POND

The rising channel pattern ranging from $0.0070 and $0.012 fails to continue the uptrend as the selling pressure grows and breaks the support trendline. The downtrend reaches the $0.0070 mark but reverses to retest the rising channel breakout. However, the higher price rejection in the retest candle hints at a downtrend continuation leading to a Doji formation.

Source- Tradingview

POND Technical Analysis

POND prices show growth of bearish influence over the price trend as the selling pressure increases evident by the increase in trading volume supporting the fall. Hence, traders can find the prices retracing to the $0.0070 mark. The crucial Exponential Moving Averages - 50, 100, and 200-days maintain a falling trend with a bearish alignment selling spree gains momentum.

With the bullish histograms crumbling to the zero line, the MACD and signal lines display a bearish crossover signaling a selling opportunity. However, the RSI slope shows a small V-shaped reversal struggling to surpass the 14-day average line. As a result, the technical indications show a high likelihood of a downtrend continuation as the bearish momentum increases. In a nutshell, the POND technical analysis takes a bearish bias and displays a selling signal.

Upcoming Trend

If the post-reversal trend cracks under the $0.0070 mark, the POND prices might fall to the next support level at the $0.0050 mark.

Resistance Levels: $0.012 and $0.015

Support Levels: $0.0070 and $0.0050