Monad keeps its uptrend going with another 17% gain in 24 hours: Whats next?

Monad [MON] has exhibited remarkable bullish strength in recent days, rapidly rising past local resistance levels to keep its uptrend going.

AMBCrypto had reported that this was a result of accumulation and steady buying pressure.

The 20-day average trading volume had been weak in March and the beginning of April but was starting to reach higher.

The breakout past the psychological round number resistance at $0.03, accompanied by increased trading volume, signaled market conviction.

The OBV did not see a dramatic move higher, as the increased spot trading volume has only kicked in recently. The current bullish breakout came alongside a strong RSI spike to 75, into overbought territory.

This can be followed by a short-term correction, but overall, the structure was bullish. The $0.0169 and $0.031 levels were the key ones to watch since December.

Monad managed a bullish internal structure break on the 1-day timeframe on the 14th of February. The altcoin has set higher lows since then, maintaining the uptrend.

Beyond $0.0314, the $0.046-$0.048 supply zone just below the all-time high would be the next target.

Should traders buy the MON breakout？Source: CoinGlass

The steady uptrend in March meant that there was not much time for long liquidations to build up. The closest cluster of liquidity to the south was at $0.025, and a larger pocket at $0.02-$0.0218.

From $0.025 to $0.035, the current market price, there was a vacuum of notable long liquidations. Meanwhile, short liquidations up to $0.04 could provide fuel for a short squeeze in the coming days.

Source: MON/USD on TradingView

The 1-day timeframe‘s volume trends showed a lack of heavy buying volume until recently. The 1-hour chart’s OBV illuminated the increased MON demand in April.

The $0.03 and $0.033 were the demand zones on this timeframe that could be retested in the short term. Traders can wait for a pullback to these areas to buy and expect the uptrend to continue.

A drop below $0.02912 would break the 1-hour timeframes bullish swing structure. It would also be the first warning that the higher timeframe trend might be facing a retracement phase or even a failed breakout past $0.0314.