Why Monad Bears Could End Up Triggering a 40% C’up’ Move?
Monad's price action suggests a potential cup-and-handle breakout, which could be amplified by a short squeeze due to heavily skewed bearish derivatives positions.Summary
Monad's price has recently dropped nearly 40% but is now showing signs of recovery, up over 27% in the last 24 hours. The 4-hour chart hints at a developing cup-and-handle pattern, a formation often preceding sharp rallies, with a potential target near $0.044 if the neckline breaks. Supporting this is the Chaikin Money Flow (CMF), which has broken its falling trendline, suggesting returning large buyer interest, although it remains below zero.
A significant catalyst is the derivatives market, where short leverage ($4.68 million MON) is nearly double the long positions ($2.16 million MON) on Bybit. This heavy bearish positioning creates the potential for a short squeeze; if the price rises against these shorts, forced liquidations could fuel a rapid upward move.
The breakout confirmation for the handle is a 4-hour close above $0.028, targeting $0.039 and potentially $0.044. Invalidation of this bullish setup occurs with a 4-hour close below $0.025, with a drop below $0.021 turning the trend fully bearish.
(Source：BeInCrypto)