Monad (MON) climbed 10.75% in the last 24 hours and was trading at $0.02281 at press time. However, this recovery was accompanied by a sharp contraction in participation.
Trading volume fell 59.67% to $37.79 million, creating a notable divergence between price action and market activity.
Such conditions often reflect a rally driven by a narrow group of buyers rather than widespread demand.
Anyway, MON maintained its upward trajectory and continued to attract offers after rebounding from its recent lows. Rising prices suggest buyers have regained control in the near term despite weakened participation.
Why do Binance traders remain optimistic?
Binance derivatives traders continued to favor the upside despite MON’s recent volatility. According to CoinGlass, 67.67% of top traders’ positions remained long, while only 32.33% were short.
This pushed the Long/Short ratio to 2.09, highlighting a strong bullish bias among large participants.
Such positioning indicates that many traders expect the rally to continue rather than fade.
However, strongly one-sided positioning can also increase risk if the price fails to maintain higher levels.
A sharp rejection would put pressure on many leveraged long positions. For now, the imbalance reflects confidence in the MON’s rebound.
As long as buyers remain in control, trader sentiment will likely remain constructive heading into the next resistance test.
MON channel breakout puts focus on $0.024
Price action improved significantly after MON broke out of its descending channel, ending a structure that had guided the decline over the past few weeks.
Buyers defended the demand zone around $0.020 and pushed the asset towards the key resistance zone of $0.024.
Additionally, the Parabolic SAR moved below the price at $0.01815, reflecting improving trend conditions.
The RSI also recovered from oversold territory and reached 43.73, up from much lower levels seen earlier in the decline.
Although the RSI remained below the neutral threshold of 50, the rebound suggests that the selling pressure has eased significantly.
If MON establishes support above $0.024, buyers could target the next major resistance near $0.030.
However, failure to achieve this breakout would likely keep prices in a broader recovery phase.
Financing Rates Tell a Different Story
Despite the strong daily performance, derivatives traders remained cautious.
The IO-weighted funding rate stood at -0.0161%, showing that bearish positioning still dominated the futures markets.
Negative funding persisted even as the price recovered, indicating that many traders continued to bet against the rally.
This divergence has created an interesting setup, as price strength and bearish derivatives sentiment rarely move together for long periods of time.
If MON continues to advance, short sellers could face increasing pressure to close their positions. Such activity would increase purchasing demand and potentially accelerate the recovery.
On the other hand, weakening prices could validate bearish expectations and keep funding rates below zero. The positioning of derivative products therefore remains a key indicator to monitor.
Can MY recover $0.030 next?
MON showed encouraging signs after regaining ground in its demand zone and breaking through the descending channel.
The RSI improved, while Binance traders maintained a strong bullish bias. However, negative funding rates have revealed persistent skepticism among derivatives players.
If buyers secure a decisive move above $0.024, MON could extend its recovery towards $0.030.
Otherwise, another rejection would likely keep the consolidating asset near current levels before the next major directional move occurs.
Final summary
- Monad broke its downtrend while buyers defended the $0.020 demand zone.
- Negative funding persisted despite the recovery, demonstrating continued market skepticism.
