Monad Price Prepares for a 64% Surge— But a $50 Million Long Squeeze Looms Below
Monad (MON) trades close to $0.021, down 7% previously 24 hours however nonetheless up 4% over the week. Monad value can be 56% beneath its post-listing high of $0.048.
Even with that drop, the chart nonetheless leans bullish as a result of an inverse head and shoulders sample is holding the construction collectively. That sample survives so long as bulls maintain one key degree. Yet, bearish dangers don’t look distant.
Inverse Head and Shoulders Pattern Holds as Dip Buyers Step In
Monad continues to respect an inverse head and shoulders setup. That sample is understood for a bullish reversal when the worth clears the neckline. Support has fashioned at $0.020. The neckline sits close to $0.024.
A day by day shut above $0.024 confirms the breakout. That breakout alerts a measured 64% transfer towards $0.040. And whereas the Monad value has corrected over 7% within the final 24 hours, dip shopping for assist retains the breakout hopes alive.
Money Flow Index (MFI) tracks shopping for strain with value and quantity. Between December 26 and 29, the worth trended decrease whereas MFI made greater highs. That is a bullish divergence. It exhibits potential dip shopping for and retail assist.
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This conduct helps defend the sample. If MFI drops below its current swing low, the dip assist weakens. If MFI clears current highs, it strengthens the case for $0.024. Right now, retail patrons are doing simply sufficient to maintain $0.020 protected.
Derivatives Lean Long, But Squeeze Risk Builds Below $0.020
Derivative positioning exhibits why the setup feels unstable. On Hyperliquid’s 7-day MON-USD chart, liquidation clusters present a clear lengthy bias. Long liquidations stack close to $93.62 million. Short liquidations sit close to $45.26 million.
Long liquidation strain is greater than 100% greater than brief liquidation strain. Traders are positioned for upside.
This creates danger. A detailed beneath $0.020 triggers a liquidation band the place over 50% of the lengthy cluster sits. That degree contains $50.34 million in cumulative lengthy leverage. A break may pressure a lengthy squeeze and drag the worth decrease.
Sellers could also be ready for this set off. If $0.020 fails, the liquidation loop accelerates the transfer.
On the flip facet, a clear shut above $0.024 liquidates most main Monad short clusters. That would affirm the breakout and open greater ranges.
Key Monad Price Levels for Bulls and Bears
Monad trades between two ranges that resolve path. Above $0.024, the breakout is energetic. The $0.029 space confirms momentum and could lead on the transfer in direction of $0.040.
Below $0.020, the construction weakens. That exposes $0.016 and invalidates the sample, breaking down the pinnacle of the inverse sample. It turns the chart bearish once more. Until then, the sample leans bullish however barely.
Right now, the market is ready for the neckline or the lengthy squeeze lure. One breakout unlocks the 64% transfer. One bear-led breakdown triggers the squeeze and makes $0.016 attainable.
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