Monad (MON) has only just stepped onto the cryptocurrency stage, launching on November 24 and showcasing a rollercoaster performance in its nascent hours. After an impressive opening price surge of about 71%, it later retracted approximately 13%. As of the last 24 hours, it saw a modest gain of around 2%, trading near $0.042.
This early slowdown in the token’s price can signify various market behaviors; it could be merely a healthy digestion period after initial excitement or possibly the first indicator of declining trading volume. Observing the 4-hour chart can provide clarity since early listings typically respond rapidly within this timeframe.
Volume Signals Look Tired On The 4-Hour Chart
Analysis of the 4-hour chart reveals that Monad has slipped below its Volume Weighted Average Price (VWAP). For those unfamiliar, VWAP represents the average price traders have paid, considering volume, and trading significantly below this marker indicates losing buyer control. This is an essential metric for assessing market sentiment.
Further scrutiny of the On-Balance Volume (OBV) sheds more light on the situation. The OBV is currently moving toward a descending trendline characterized by a series of lower lows. This pattern indicates that each slight price bounce is supported by weaker volume than before, increasing the risk that a new lower low could trigger a rapid decline in trading volume for this recently listed token.
This combination of VWAP and OBV indicates a crucial warning. With price resting beneath the VWAP and OBV pressing against a descending trendline, there are signs that momentum is waning. This slowdown helps explain why Monad has struggled to gain traction over the past 24 hours despite the initial fervor.
Whale Buying Offers Support — But Will It Be Enough?
Despite the volume signals, whale activity remains a pivotal factor keeping Monad’s chart alive. As prices stabilized following a volatile initial burst, the movements of large wallet holders become increasingly important.
Over the last 24 hours:
- Mega whales increased their holdings by 10.67%, bringing their total to 176.44 million MON. This addition amounted to approximately 17.08 million MON, valued at around $717,000 at the current price.
- Standard whales also increased their holdings, jumping by 9.51% to reach 55.42 million MON, having added about 4.80 million MON worth roughly $202,000.
In total, whales have accumulated approximately 21.88 million MON, reflecting about $919,000 in new spot buying during a period of price slowdown. Such substantial purchasing activity could provide the necessary support to help prevent OBV from breaking below its trendline. If this momentum continues, there could be a chance for OBV to rebound and push the price back above VWAP.
Key Monad Price Levels Now Decide The Next Move
For Monad to regain upward traction and reinvigorate interest, the whales need to lift OBV and drive the MON price above VWAP. If they succeed, the path becomes clearer:
- First target: $0.049
- Subsequent targets: $0.053 and $0.056
This would pave a hopeful pathway during the initial price discovery phase. However, should the price fail to hold at $0.042:
- Next support level: $0.040
- Failure at that point would signal a potential drop to $0.031, which would reset much of the early listing gains made.
In summary, the current market behavior surrounding Monad encapsulates a dynamic interplay of volume indicators signaling weariness while simultaneous whale buying injects a glimmer of hope. The next significant move relies heavily on whether we witness an OBV breakdown or if whale demand manages to uplift the price back above VWAP, targeting $0.049.
