Monad's MON token has experienced a significant decline of approximately 13% in the past 24 hours, with the latest price at $0.029 according to CoinMarketCap data. The cryptocurrency dropped from its approximately $0.03394 price area on October 3 to the current $0.029 level, marking a sharp reversal from recent highs. The token's lowest price during Tuesday's trading session reached around $0.0289, highlighting the intensity of the sell-off and breaking below the key psychological $0.03 level. As per AMBCrypto, MON has posted gains of just 11.58% in the past year alone, making it one of the most struggling crypto tokens in recent times.
MON began October with strong momentum, climbing from below $0.027 to nearly $0.036, as reported by AMBCrypto. However, this upward movement has since reversed, with sellers taking control after the token reached the $0.034 price level. Historical CoinGecko data indicate that MON prices increased from $0.0240 on September 23 to $0.0337 on October 1, with declining prices after that date. The recent decline reflects profit-taking behavior among traders who had benefited from MON's recent strength, though the price movement appears to be driven by multiple factors rather than any single catalyst.
Chart analysis using the 1-day time frame shows that while the outlook for MON appears grim as the price continues to drop, there's a bullish probability that could still hold. The present decline has pushed the asset into a demand zone marked in blue, where there's a high probability of buy-side liquidity. Market reaction from this level should see the price take a swing higher, reaching the closest target at $0.035, while stronger momentum could see the price trade up to $0.037. There's a possibility that the market sees a rebound, especially as the 20-day SMA remains above the 50-day SMA on the chart, though one major hurdle would be the price trading past the descending resistance line above it.
Despite potential recovery signals, bearish pressure remains on the table as technical indicators point towards further weakness. The Aroon Indicator shows bearish pressure with the Aroon Up dropping to around 72.7% while the Aroon Down rose to 27.5%. The Parabolic Stop and Reverse (SAR) has printed a similar bullish pattern, with price dots forming above the price, though it still maintains that the market condition is mildly bearish. If bearish dominance persists, the price is likely to drop toward the ascending support line below, where buyers could accumulate as they did on the previous three occasions.
MON's decline has been met with accumulation and strong buying activity in the spot market. The spot market Netflow, which tracks this activity, shows a -$1.21 million Netflow in MON. The Netflow follows roughly $10.46 million worth of MON accumulated since the start of the 6th of September, suggesting investors see the decline as an opportunity to accumulate the asset. If the accumulation continues, there's a high chance that the present demand zone could provide the needed catalyst for a rebound, as buyer dominance is strong despite continued bearish pressure.
