Why Ronin, the Axie Infinity Blockchain, Is Returning to Ethereum as a Layer-2.
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Key Takeaways
The Ronin (RON) price broke out from a long-term resistance trend line.
RON faces a critical horizontal and Fibonacci resistance at $2.50.
Can RON build on its breakout and close above this long-term resistance?
The RON price has increased since November, breaking from a long-term descending resistance trend line that sloped the decline since the all-time high. This is a sign that the correction is over, and a new upward movement has started.
However, RON must still clear the $2.50 resistance area to confirm this. Let’s analyze the price action and see how likely this is.
The weekly time frame RON chart shows that the price has increased since falling to a low of $1.23 on Aug. 5. In November, the RON price completed a double bottom pattern (white icon), confirming the $1.40 area as support.
The Ronin price has increased since, breaking from a descending resistance trend line. The trend line has existed since the all-time high, so the breakout could mean the downward trend is over. RON reached a high of $2.45 in December before falling slightly.
The main resistance area is at $2.50. This is both a horizontal resistance and the 0.382 Fibonacci retracement resistance level. The road to an all-time high would be relatively clear if RON breaks out from it.
Technical indicators are bullish, indicating the RON price will break out. The Relative Strength Index (RSI) and Moving Average Convergence/Divergence (MACD) have generated bullish divergences (MACD) and are increasing.
Also, both are above their bullish thresholds at 50 and 0, respectively.
Therefore, the weekly time frame predicts a bullish RON breakout above $2.50.
Ronin On-Chain Stats
Ronin’s on-chain activity is trending upward. There are 16.44 million weekly transactions and 1.99 million weekly active addresses, up 44% and 9% from the previous week.
Pixel has the most active addresses, followed by Wild Forest, Axie Infinity, and The Machines Arena. Last week, weekly revenue reached a new all-time high of 28,616 RON.
The number of weekly addresses is close to its all-time high of September. The growth is more gradual and sustainable since the addresses 30-day moving average (MA) is also at an all-time high.
Positive Ronin news also exists since the network announced it will partner with Chainlink to launch its CCIP in the Ronin blockchain. Ronin also introduced bridge lanes between it and Ethereum and Base, greatly improving operability.
This could bode well for the future TVL. While the RON TVL of $177 million is nowhere close to its all-time high of $1.3 billion, the bridge TVL reached a new all-time high in March 2024 and is close to breaking that high in December.
The improved interoperability features could further boost this TVL.
New RON All-Time High?
The wave count suggests that RON will reach a new all-time high price. According to the count, RON is in the fifth and final wave (white) of an upward movement that started in June 2022.
The most likely target for the top of this increase is $5.56. The target is created by giving wave five the same length as waves one and three combined.
The same target is reached by drawing an ascending parallel channel connecting the lows of waves two and four and projecting them to the top of wave three.
Furthermore, on-chain activity in the blockchain is booming, with several metrics reaching new all-time highs. A target
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Valdrin Tahiri is a cryptocurrency analyst and reporter at CCN, specializing in technical analysis with a focus on Elliott Wave theory, on-chain metrics, and fundamental research. He brings over seven years of experience in the crypto space as both a trader and writer.
He discovered cryptocurrencies in 2017 while earning his MSc in Financial Markets at the Barcelona School of Economics, which sparked a deep interest in blockchain and market dynamics. Since then, he’s contributed to top crypto outlets like BeInCrypto and CoinGape.
Valdrin also served as Community Manager of BeInCrypto’s Telegram group for three years, helping grow it into one of the largest crypto communities worldwide. His expertise in market structure and price patterns allows him to break down complex trends into clear, actionable insights.
He’s published thousands of articles covering altcoins, Bitcoin cycles, and macro trends.
