The crypto market remains under pressure, but a few tokens are showing resilience. Monad [MON] stood out over the past 24 hours, gaining about 13%, at press time.
CoinMarketCap data suggests that newer tokens with compelling narratives continue to attract attention. In MON’s case, strong community support and foundation backing have played a key role in driving this rally.
What’s driving Monad’s price?
First, Monad rallied after volume spiked by more than 140%, surpassing $160 million. This indicated there was strong, concentrated buying interest, thus overpowering the broader market’s selling pressure.
Moreover, sentimental talks filled the social spaces, driving Monad crypto once again. The introduction of the Nitro accelerator, which opened up opportunities for developers across all chains, sparked the hyped discussions.
As such, the accelerator would allow turning already-funded crypto projects into global products with actual reach. That way, the developer teams would receive about $500K in funding from top venture capital (VC) firms.
On the on-chain front, the Total Value Locked (TVL) has been rising since Monad’s launch on the 22nd of December. In fact, the TVL was at $628 million, which was a change of more than 4% to the upside.
The DEXs volume was slightly below $100 million, indicating consistent trading activity since late December. The Perps’ volume was dwarfed, though, at $3.32 million.
Additionally, the altcoin was enjoying the momentum in the stablecoin sector. For context, MON’s stablecoin market cap had grown past the $444 million mark.
Although the fundamentals and network activity demonstrated strength, the price action was divided in terms of direction bias.
Is MON price weakening?
On the 4-hour chart, MON price was trading in a sideways market. A single candle movement covered the range between $0.01679 and $0.01979, confirming the strength of the buying.
However, the trade back into the range immediately after the breakout was an indication of weakness. This signaled that the rally might not last.
For context, MACD bars were reducing in size while their color was fading as of writing. Additionally, the Chaikin Money Flow (CMF) was declining at -0.09. The two showed that momentum was fading and capital was leaving.
Hence, the question of whether Monad was headed toward the base of the consolidation. From a technical perspective, MON was trading toward the lower support at $0.01679.
On the other hand, successfully breaching $0.01979 would mean a shift in market structure. Otherwise, MON price stays in a bearish structure, with today’s move seeming weak.
Final Thoughts
- Monad was up 13% following hype from the Nitro accelerator and network activity.
- MON price broke above a range strongly but was immediately rejected, signaling momentum weakness.
