Monad Soars 19% in a Day: Can MON Maintain its Momentum?

Summary:
Monad’s cryptocurrency, MON, experienced a remarkable rise of over 19% in the last 24 hours, reflecting a positive sentiment following its post-launch rally. Factors such as increasing user activity and the integration of a stablecoin contributed to this spike. However, questions remain regarding the sustainability of this upward trend.

Key Takeaways

Monad (MON) surged more than 19% in just one day.
Improved network activity and the addition of a stablecoin have boosted liquidity.
Current price action shows bullish signals, but potential retracements may occur.
The influx of capital from new users points to strong market interest.

Monad Soars 19% in a Day: Can MON Maintain its Momentum?

Why is Monad Rising Today?

Recent data from Artemis indicates a mixed sentiment for Monad, although there are signs of bullish activity. After hitting lows on December 11th, the network's activity has started to recover. Over the past week, there has been a simultaneous rise in daily active users and new sign-ups, with daily active users averaging 76,000 and around 24,000 new users added. Chain transactions exceeded 1.6 million each day.

Monad Activity Source: Artemis

While recent activity appears stable, it is an improvement compared to the previous week, which has positively influenced MON’s price. Moreover, the recent integration of the USD1 stablecoin has enhanced trading liquidity, contributing to a noteworthy price increase among top cryptocurrencies.

However, the launch of staking on exchanges might help manage supply, as these locked tokens can create buying pressure on the market.

Will MON Maintain Its Momentum?

Analysis shows that MON's price has recently escaped its wedge consolidation. Since December 18th, the price has been climbing within this wedge but broke out dramatically within the last 24 hours. The bullish signal from the Relative Strength Index (RSI) and the opening of the Bollinger Bands suggest that buyers are currently in control. This active volatility further explains the significant price spike following the breakout.

MON Price Chart Source: TradingView

As long as MON holds above $0.02169, it could target around $0.02667 next. However, there may be moments of price retracement that could test weaker hands. The following trading sessions and overall market sentiment will provide further clarity on the currency’s ability to keep its bullish momentum.

Capital Inflow into the Ecosystem

Importantly, Monad has emerged as the third-most sold token in 2025 among newer cryptocurrencies, achieving over $217 million in sales, which indicates a significant influx of capital into the ecosystem.

Source: Wu Blockchain

Interestingly, more capital is flowing in from the new users previously mentioned. However, the overall number of new users remains relatively small.

Final Thoughts

Overall, while Monad (MON) is experiencing a promising surge fueled by solid user activity and liquidity enhancement, the sustainability of this increase is still uncertain. Observing the market's reaction in the coming days will be crucial to determine the longevity of this upward trend.