Ronin Network’s Cup and Handle Pattern Indicates Possible Breakout

Ronin Network, renowned for its dominance in the NFT gaming sector, is experiencing a notable technical pattern that could indicate a bullish breakout. A recent analysis by CryptoBusy highlights a potential “Cup and Handle” pattern, suggesting a possible upward move for Ronin (RON).

The “Cup and Handle” pattern is a bullish continuation signal, often indicating a period of consolidation followed by a breakout. This pattern comprises two main stages: the cup and the handle. The cup stage is characterized by a rounded bottom, reflecting a gradual shift from selling to buying pressure. For Ronin, this formation occurred from mid-2023 to early 2024, demonstrating a steady accumulation phase. Following the cup’s peak, a pullback or consolidation forms the handle, which was observed in early 2024, where Ronin consolidates its gains before a potential breakout.

Several key levels provide insights into Ronin’s price movements. The demand zone around 2.422 is a critical support area, indicating where buying interest is anticipated. Additionally, Fibonacci retracement levels provide further resistance and support insights. The 0.618 level at 3.999 represents a major resistance level where the price retraced and faced selling pressure.

The 0.5 level at 3.494 marks Ronin’s current consolidation point, indicating a potential point of stability before further movement. Furthermore, the 0.382 level at 2.989 acts as a support level, while the 0.236 level at 2.484 aligns closely with the demand zone, reinforcing strong support.

According to CoinGecko, Ronin (RON) is currently priced at $2.33, with a 24-hour trading volume of $34,733,524. Despite the promising technical pattern, Ronin has faced a 6.5% price decline in the last 24 hours and a 17.7% decline over the past week. With a circulating supply of 330 million RON, the market capitalization stands at $766,785,875.

Ronin’s recent performance shows that it is underperforming compared to the global cryptocurrency market, which has decreased by 3.50% over the past week. Additionally, Ronin has lagged behind similar cryptocurrencies under FTX Holdings, which have seen an 11.40% increase.