The Monad Layer1 blockchain's native token, MON, has faced a notable decline in value but is now showing early signs of a potential recovery. After a steep drop of around 41% over the last two months, recent price movements suggest that the token may be on the verge of a bullish reversal. The material points to an encouraging trend: investors are beginning to regain confidence in the asset.
Recent Price Performance of MON
Over the past 60 days, MON's price has been adversely affected by a slowdown in total value locked (TVL) growth and a decrease in application-level revenue. However, today, MON experienced a 12% bounce, indicating that the downward momentum could be losing strength. Analysts have observed the formation of a double bottom pattern, a classic bullish reversal signal, with the first bottom occurring at the 0.0018 support zone.
Market Dynamics and Buyer Interest
Following the initial drop, MON attempted a rebound but was met with resistance, leading to a retest of the same support level. Encouragingly, buyer interest has resurfaced around the 0.0018 mark, preventing further declines and establishing the second bottom of the pattern. Currently trading at approximately 0.002071, MON is showing signs that selling pressure may be diminishing, supported by momentum indicators like the MACD, which hint at a potential bullish crossover.
Key Resistance Levels and Potential Recovery
For this bullish scenario to gain traction, MON must reclaim the 50-day moving average, situated near 0.002266. A sustained move above this threshold would indicate a shift in short-term momentum and enhance the likelihood of a recovery rally. Should buyers manage to push the price towards the 0.002970 neckline, a decisive breakout above this resistance would confirm the double bottom pattern and pave the way for a more substantial upward movement.
Critical Support Zone
Nevertheless, the 0.0018 support zone remains crucial; a drop below this level would invalidate the bullish outlook. Despite recent challenges, MON's technical structure is beginning to show signs of improvement, suggesting that Monad may be nearing a pivotal turning point.
The recent update on the NFTNXPC exchange rate has generated significant interest, contrasting with the ongoing recovery signs of the MON token. For more details, visit read more.
