Monad (MON) is trading close to 0.021 USD, down 7% in the last 24 hours, but up 4% over the week. The price of Monad is still 56% below its post-listing peak of 0.048 USD.
Although the price has dropped, the chart still shows an upward trend because an inverse head and shoulders pattern has formed, maintaining its structure. This pattern will remain as long as the bulls protect the key levels. However, the risk of a downward trend is still not far away.
The inverse head and shoulders pattern remains, while investors gradually buy when prices fall.
Monad continues to establish a price base according to the inverse head and shoulders pattern. This pattern is known for often flipping bullish when the price passes the neckline, with support at 0.020 USD and the neckline near 0.024 USD.
If the daily candle closes above 0.024 USD, it will confirm the breakout signal, which may lead to a 64% movement toward 0.040 USD. Even though Monad's price has decreased more than 7% in the past 24 hours, the buying strength during the drop still keeps the breakout trend hopeful.
Money Flow Index (MFI) is a momentum indicator that considers both price and volume. Between December 26 and 29, the price moved downward while the MFI created a new high. This is a bullish divergence signal, indicating accumulation during pullbacks and support from retail investors.
Do you want more token information like this? Subscribe to the daily Crypto newsletter by Editor Harsh Notariya here.
This behavior helps protect the price pattern. If the MFI drops below the latest swing low, buying strength during the drop will weaken, but if the MFI can create a new high, it will further enhance the chances of a rebound above 0.024 USD. Currently, retail investors are doing just enough to maintain the level of 0.020 USD.
Derivatives hold a long position, but the squeeze risk increases if below USD0.020.
The derivatives position shows why this price pattern looks unstable, as on the 7-day MON-USD chart of the Hyperliquid platform, the liquidation group shows a clear bias toward long, with the long side accumulating close to 93.62 million USD while the short side is around 45.26 million USD.
Long liquidation pressure is more than 100% greater than short, meaning that traders are positioned for an upward direction.
This creates a risk, as if the price closes below 0.020 USD, there will be a liquidity strip of more than 50% accumulated in the long group. This level has a long leverage accumulation of 50.34 million USD, and if the price breaks, it could trigger a long squeeze and push the price lower.
Therefore, the seller may be waiting for this opportunity because if the level of 0.020 USD breaks, the liquid cycle will accelerate the movement.
Conversely, if the price closes clearly above 0.024 USD, it will cause a liquidation in the major short Monad group. This will confirm the breakout and pave the way for higher price levels.
The price level of Monad is important for both bulls and bears.
Monad is trading between two levels that indicate direction. If it goes above 0.024 USD, the breakout will begin, and if the price holds above the zone of 0.029 USD, it will further confirm the momentum, potentially leading to a target around 0.040 USD.
However, if the price drops below 0.020 USD, the structure will weaken and may test the level of 0.016 USD, which would invalidate this chart pattern and bring the chart back into a downtrend again. However, as long as the pattern remains intact, the direction still leans slightly bullish.
The market is currently waiting for a neckline or a long squeeze trap. The breakout conditions will unlock a movement of 64% of the price, but if a pullback occurs from the bears, it will open the way for the price to reach 0.016 USD.