Monad [MON] could rank among the market’s top gainers if bullish strength persists, especially as the asset posts a 13% gain over the past day, placing it among the leading performers in the crypto market over the last 24 hours.
However, the rally still faces a major obstacle, as price trades within a resistance block expected to cap further upside. The key question is whether Monad can break above this level and open a path toward its all-time high.
Monad rallies on the back of accumulation
The recent surge in accumulation has supported MON’s upward momentum, and current indicators suggest that this trend may not slow down soon.
The Accumulation/Distribution indicator continues to trend higher, showing that as price increases, investors keep buying. Trading volume has also strengthened, exceeding 2.69 billion over the past day.
Accumulation tells only part of the story. The Money Flow Index (MFI), which tracks capital inflow and outflow, also indicates stronger inflows over the same period.
The MFI remains slightly above the 80 level and trends upward, suggesting that investors are positioning for further upside gains.
While this outlook remains bullish, market volatility requires close attention, as sentiment can shift quickly, particularly with the broader market still in a bearish phase.
Warning signs emerge
Bullish positioning comes with caution. The Bollinger Bands indicator, which measures whether an asset is overbought or oversold, shows that MON has entered the overbought region.
This level, marked by the upper band, suggests that buying pressure could weaken, potentially leading to a pullback toward lower levels, though not necessarily an immediate reversal.
This aligns with the resistance zone on the chart, which could act as a strong barrier and push prices lower. In that scenario, MON could form lower lows or continue to range, with the latter more likely if accumulation continues to build.
On the other hand, a breakout would significantly strengthen MON’s structure. Price would face less resistance on the path higher, as fewer supply zones remain overhead.
Is an all-time high likely?
A move toward a new all-time high depends on several factors, with capital inflow remaining the most critical.
A rally from the current level to the all-time high represents roughly a 56% increase. With a market capitalization of $1.52 billion, this would require an additional $851 million, pushing total valuation toward $2.37 billion.
For this to materialize, bullish sentiment must align across multiple fronts. Spot market accumulation must remain strong, perpetual Futures should continue to support long positioning, and broader crypto market sentiment must either turn bullish or stabilize.
At present, short-term data from both perpetual and Spot markets suggests that bulls remain in control. Over the past 10 days, MON’s perpetual flows reached $12.88 million, while Spot market inflows held at $7.31 million over the past five days, according to CoinGlass.
Final Summary
- MON extends its run as accumulation surges again, while capital inflow into the market continues to rise.
- A key resistance obstacle remains the critical level to watch in determining whether MON can sustain a major price rally.
