Monad [MON] ranked fifth in daily gains among the top 200 coins by market cap, climbing 14% at press time. However, the trading volume remained relatively low despite price action rallying, indicating a lack of momentum.
The altcoin appeared to be trading in a bullish pattern, implying that the technical setup was primarily responsible for the rally, with network activity also playing a role.
What Monad price needs to rally higher
Since the last ten days of January, Monad has been trading within a rising trend channel, according to the 4-hour timeframe chart. Every time MON has reached the channel’s lower support level, subsequent bounces have 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, indicating 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. However, the altcoin’s price needed to break above $0.025, the middle of the channel, which acted as resistance in the current structure.
Over the past two months alone, the $0.025 level has rejected further appreciation four times, though in one instance, the MON price faked out. That showed how important the level was in opening the room for a potential rise to $0.028.
In case the sellers reject a breach of $0.025, the altcoin may drop back to $0.022. According to the technical outlook, the price action was spending more time in the lower band of the channel, indicating weakness in buying.
Network activity surges
Meanwhile, the network activity in the Monad blockchain was growing.
For instance, there was a spike in social sentiment following an airdrop event. Monad sent tokens to all holders of Monad NFTs and active chain users.
At the time of writing, the Daily Transactions jumped by 14% over the past three days, rising from a low of 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. Sellers have reacted, and buyers must push the price above this level to continue the bullish trend.
Final Summary
- Monad gained about 14% in the past 24 hours as the price respected the technical outlook.
- MON faces a key resistance at $0.025 to hit the top of the channel at $0.028.
