Breaking out of a three-month range
A range (purple) has been in place since February, stretching from $0.085 to $0.108, though some candle wicks extended beyond those levels. A breakout attempt a week ago failed, bringing RON back to the range lows. But the recent rally has brought the price back near the range highs, which are now being tested as support. Moving averages and the Relative Strength Index (RSI) signal bullish momentum, though the RSI shows a bearish divergence on the daily timeframe. The On-Balance Volume (OBV) has made new highs, but this doesn’t guarantee the current breakout will hold. The reaction at the $0.108 area could be a make-or-break moment for bulls.
Cautiously bullish traders
For traders, the retracement levels at $0.1099 and $0.099 represent the “golden pocket” where a bullish reversal could occur. These levels align reasonably well with the range’s high and mid-range. A drop below $0.099 would signal another retracement to the $0.085 range lows, nullifying the breakout. On the flip side, a strong reaction from the nearby demand zone could push RON to $0.165 and $0.19—the 23.6% and 61.8% Fibonacci extension levels based on the recent rally.
What to watch next
The key level to watch is $0.108. If RON holds above it, bulls might gain confidence. But if the price slips below, we could see a retest of the range lows. Volume and open interest remain high, which could fuel further moves. I think the next few days will be telling for whether this breakout has legs or fizzles out.
