3 Reasons The 29% Monad Price Rally Could Face The Boxing Day Test
Despite a 29% rally and pattern breakout, Monad's price faces potential struggle due to weak capital flow, rising spot selling, and cooling derivatives positioning.Summary
The Monad (MON) price has surged over 29% in the last week and successfully broke out of an inverse head and shoulders pattern. However, three key indicators suggest this rally may struggle heading into Boxing Day (December 26th).
First, the Chaikin Money Flow (CMF) failed to break above zero during the breakout, indicating weak capital support, and has since trended lower while the price rose. Second, spot market behavior shows a shift towards profit-taking, with net exchange inflows increasing since December 22nd, contrasting with earlier outflows.
Third, derivative positioning shows a reversal in sentiment; while smart money aggressively built long exposure leading up to the breakout, long exposure has recently dropped significantly across major addresses. The price is currently at a fragile point, needing to hold above $0.021 or risk invalidating the breakout structure if it falls below $0.016.
(Source：BeInCrypto)