Are you keeping a watchful eye on the cryptocurrency market? The latest buzz surrounds Monad, which could be gearing up for a massive 40% breakout. The token’s price activity is forming a classic cup-and-handle pattern, a well-recognized indicator of potential price rallies. Here’s everything you need to know about the current market dynamics and how they could fuel Monad’s next big move.
What Is the Cup-and-Handle Pattern?
The cup-and-handle is a bullish continuation pattern that indicates a potential breakout. It is formed when a cryptocurrency’s price undergoes a rounded bottom (cup) followed by a smaller consolidation or dip (handle) before a breakout. In Monad’s case, this formation is appearing on its 4-hour chart, signaling a likely uptrend.
Backing this technical analysis is the Chaikin Money Flow (CMF) indicator. CMF is showing early signs of increasing buyer strength. The indicator has broken its falling trend line, potentially marking the return of large buyers. However, the CMF value remains slightly below zero, which means it hasn’t fully confirmed buyer dominance yet.
Why Bears Could Fuel a Massive Move
One of the standout features of Monad’s recent momentum is the overwhelming dominance of short positions in the derivatives market. Data from Bybit reveals that short positions currently hold $4.68 million MON, compared to $2.16 million on the long side. This imbalance creates a fertile ground for a classic short squeeze.
A short squeeze occurs when bears betting against a token’s price are forced to close their positions, accelerating the buying pressure. As Monad moves closer to the $0.031 resistance level, this will likely trigger liquidations that push the price even higher. Analysts predict that breaking above $0.031 could lead to targets of $0.039 and eventually $0.044, completing the 40% rally.
Key Levels to Watch
Investors should closely monitor the following price levels:
- A 4-hour close above $0.028 signals the start of the handle breakout, opening the way for higher targets.
- A move above $0.031 will liquidate more shorts and further fuel the rally toward $0.039–$0.044.
- A 4-hour close below $0.025 could invalidate the cup-and-handle pattern and switch the trend to bearish.
Looking to Stay Ahead in Market Trends?
For those eager to ride the wave of crypto price movements, now is the time to act. To stay on top of Monad and other market insights, make sure to subscribe to a reliable crypto-tracking platform or newsletter. For example, you can sign up for BeInCrypto’s Daily Crypto Newsletter to receive the latest updates directly in your inbox.
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Conclusion
With a favorable technical setup, increasing buyer interest, and a crowded short position, Monad appears poised for a significant breakout. However, as with any investment, caution is key. Stick to your risk management strategies, stay updated with market trends, and consult professional advice if needed. The crypto market’s volatility can offer incredible opportunities—but always demands careful planning.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Always conduct thorough research before making any financial decisions.
