Monad [MON] has exhibited remarkable bullish strength in recent days, rapidly rising past local resistance levels to keep its uptrend going.
AMBCrypto had reported that this was a result of accumulation and steady buying pressure.
The 20-day average trading volume had been weak in March and the beginning of April but was starting to reach higher.
The breakout past the psychological round number resistance at $0.03, accompanied by increased trading volume, signaled market conviction.
The OBV did not see a dramatic move higher, as the increased spot trading volume has only kicked in recently. The current bullish breakout came alongside a strong RSI spike to 75, into overbought territory.
This can be followed by a short-term correction, but overall, the structure was bullish. The $0.0169 and $0.031 levels were the key ones to watch since December.
Monad managed a bullish internal structure break on the 1-day timeframe on the 14th of February. The altcoin has set higher lows since then, maintaining the uptrend.
Beyond $0.0314, the $0.046-$0.048 supply zone just below the all-time high would be the next target.
Should traders buy the MON breakout?
The steady uptrend in March meant that there was not much time for long liquidations to build up. The closest cluster of liquidity to the south was at $0.025, and a larger pocket at $0.02-$0.0218.
From $0.025 to $0.035, the current market price, there was a vacuum of notable long liquidations. Meanwhile, short liquidations up to $0.04 could provide fuel for a short squeeze in the coming days.
The 1-day timeframe’s volume trends showed a lack of heavy buying volume until recently. The 1-hour chart’s OBV illuminated the increased MON demand in April.
The $0.03 and $0.033 were the demand zones on this timeframe that could be retested in the short term. Traders can wait for a pullback to these areas to buy and expect the uptrend to continue.
A drop below $0.02912 would break the 1-hour timeframe’s bullish swing structure. It would also be the first warning that the higher timeframe trend might be facing a retracement phase or even a failed breakout past $0.0314.
Final Summary
- The altcoin has made steady gains since the February crash and finally managed to breach the January highs at $0.0314.
- Traders can remain bullishly biased on MON until the $0.02912 level is breached.
