Monad (MON) is at a critical juncture in its technical trajectory at the close of this 2025. Currently, the asset is trading near $0.021, maintaining a structure that analysts consider predominantly bullish. The inverse head and shoulders pattern remains the pillar sustaining hopes for a massive recovery toward the end of the year. Monad respects a bullish reversal technical setup that could change its short-term trend significantly. Buyers defend the key support level with determination in the latest trading sessions on the market.
On the other hand, the Money Flow Index (MFI) has shown a significant bullish divergence between December 26 and 29. While the price recorded local lows, the MFI reached higher highs, suggesting silent accumulation by retail investors recently. Likewise, the $0.020 support has become fundamental to keeping the current chart structure alive and valid. In this way, buying pressure seems to be gradually increasing, as participants seek to anticipate the next explosive move.
Likewise, the definitive confirmation of this scenario depends on a daily close above the “neckline” located at $0.024. If the bulls manage to overcome this barrier, a measured technical target representing a 64% increase would be activated. Therefore, the Monad price would target $0.040 quickly after validating the breakout of the main resistance level. The market awaits a strong volume signal, in this way confirming the exit from the current consolidation channel.
Massive liquidation risk threatens the stability of the 0.020 dollar support level
On the other hand, the derivatives market presents a high-tension landscape that could invalidate the bullish thesis. Hyperliquid data shows that accumulated long liquidations exceed 93 million dollars, doubling the short positions today. Over 50 million in leveraged positions are concentrated just below the $0.020 level at this moment. Furthermore, a break of this support would trigger a “long squeeze”, which is why the price could suffer an accelerated and painful fall.
In this sense, sellers could be waiting for a catalyst to push the price into the liquidation zone to force a cascading close. If the $0.020 level fails, the technical structure would weaken considerably, exposing the $0.016 level as the next stop. Volatility in derivatives markets is extreme, in this way the risk of a bear trap remains latent. Nevertheless, Monad’s technology continues to attract the attention of those seeking projects with high scalability potential.
Will Monad manage to liquidate the bears and reach the 0.040 dollar target in 2026?
However, a close above $0.024 would not only validate the pattern but also liquidate most of the short position clusters. This event would act as additional fuel to drive the price toward the $0.029 area, confirming the momentum toward new highs. Surpassing the 0.024 dollar resistance is vital, nevertheless, the market remains cautious given the lack of a definitive breakout. Traders must closely monitor both the neckline and the liquidation support.
Finally, Monad is caught between a 64% rally or a collapse toward $0.016 depending on who wins the battle for liquidity. The inverse head and shoulders pattern offers a clear roadmap, but excessive leverage adds a layer of dangerous uncertainty today. MON’s future will depend on bullish conviction during the first days of 2026 on the exchanges. Therefore, risk management will be the absolute priority for all investors trading this asset.
