Monad: Technical Signals Show Volume Fatigue
Analysis of the 4-hour chart reveals concerning indicators for bullish momentum. Monad is now trading below its VWAP (Volume Weighted Average Price), a crucial technical level that represents the average price paid by traders accounting for volume. When an asset trades significantly below its VWAP, it generally signals that buyers are losing initial control of the momentum.
The Volume on Balance (OBV) confirms this structural weakness. The indicator is heading toward a descending trendline constructed from a series of progressively lower lows. This pattern indicates that each rebound attempt is supported by declining volume compared to the previous one. For new listings, this type of configuration often precedes a more pronounced correction, as early buyers begin taking profits while new entrants remain cautious.
The 4-hour timeframe constitutes the most relevant period for evaluating new listings. Freshly listed tokens react much more quickly on this time scale, making intraday analysis particularly useful for detecting sentiment shifts before they amplify.
Massive Whale Accumulation Changes the Equation
Despite these mixed technical signals, on-chain activity tells a different story. Whales are aggressively accumulating MON, creating structural support that could reverse the bearish volume trend. Mega whales have increased their positions by 10.67% in 24 hours, adding approximately 17.08 million MON to their reserves, which now reach 176.44 million tokens. At $0.042 per unit, this represents a capital deployment of approximately $717,000.
Classic whales are following the same trajectory with a 9.51% increase in their holdings, bringing their total to 55.42 million MON. They accumulated an additional 4.80 million tokens worth approximately $202,000. This simultaneous dual accumulation across different large wallet categories suggests institutional conviction or at least a coordinated accumulation strategy at these price levels.
MON’s current dilemma boils down to a conflict between fatigued technical indicators and sustained institutional demand. The next move will depend on the outcome of this battle. If volume continues to decline and the OBV breaks its descending trendline, the token could quickly retest lower supports. Conversely, if whale demand intensifies sufficiently to push price above the VWAP, a return toward the $0.049 resistance becomes feasible in the short term.
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