The cryptocurrency Monad (MON) saw significant price movement, ranking fifth in daily gains among major coins. Technical analysis suggests it is trading within a bullish pattern, but faces a key resistance level that must be broken to continue its rally. Network activity on the Monad blockchain has increased, coinciding with recent user incentives.
The cryptocurrency Monad [MON] ranked fifth in daily gains among the top 200 coins by market cap, climbing 14%. Its trading volume remained relatively low despite this price action, indicating a lack of momentum. The altcoin appeared to be trading in a bullish pattern, implying the technical setup was primarily responsible for the rally.
Since the last ten days of January, Monad has been trading within a rising trend channel on the 4-hour timeframe chart. Every time MON reached the channel’s lower support level, subsequent bounces resulted in higher structural levels. The current daily surge came after the price bounced off the $0.021 zone.
The price action flipped above the SuperTrend indicator, signaling a shift in market structure over the short term. Furthermore, the Bull Bear Power (BBP) confirmed the existence of more buyers. Such continuation in buying activity would put $0.028 in sight for the token’s price.
However, the altcoin’s price needed to break above $0.025, the middle of the channel which acted as resistance. Over the past two months alone, the $0.025 level has rejected further appreciation four times, showing its importance. If sellers reject a breach of $0.025, the altcoin may drop back to $0.022.
Meanwhile, network activity on the Monad blockchain was growing. There was a spike in social sentiment following an airdrop event where Monad sent tokens to holders of Monad NFTs and active chain users. Daily Transactions jumped by 14% over the past three days, rising from 1.464 million to 1.870 million.
Additionally, the Total Transactions made a new all-time high of 237.9 million, as per MondVision. The possibility of the MON price reaching $0.028 remains uncertain, as the bulls’ strength remains low. As the new month begins, the altcoin is trading below the $0.025 resistance level.
