64% Jump or a Long Squeeze First?

Monad (MON) trades near $0.021, down 7% in the past 24 hours but still up 4% over the week. Monad price is also 56% below its post-listing high of $0.048.

Even with that drop, the chart still leans bullish because an inverse head and shoulders pattern is holding the structure together. That pattern survives as long as bulls hold one key level. Yet, bearish risks do not look distant.

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Inverse Head and Shoulders Pattern Holds as Dip Buyers Step In

Monad continues to respect an inverse head and shoulders setup. That pattern is known for a bullish reversal when the price clears the neckline. Support has formed at $0.020. The neckline sits near $0.024.

A daily close above $0.024 confirms the breakout. That breakout signals a measured 64% move toward $0.040. And while the Monad price has corrected over 7% in the last 24 hours, dip buying support keeps the breakout hopes alive.

Money Flow Index (MFI) tracks buying pressure with price and volume. Between December 26 and 29, the price trended lower while MFI made higher highs. That is a bullish divergence. It shows possible dip buying and retail support.

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This behavior helps defend the pattern. If MFI drops under its recent swing low, the dip support weakens. If MFI clears recent highs, it strengthens the case for $0.024. Right now, retail buyers are doing just enough to keep $0.020 safe.

Derivatives Lean Long, But Squeeze Risk Builds Below $0.020

Derivative positioning shows why the setup feels unstable. On Hyperliquid’s 7-day MON-USD chart, liquidation clusters show a clear long bias. Long liquidations stack near $93.62 million. Short liquidations sit near $45.26 million.

Long liquidation pressure is more than 100% higher than short liquidation pressure. Traders are positioned for upside.

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This creates risk. A close below $0.020 triggers a liquidation band where over 50% of the long cluster sits. That level includes $50.34 million in cumulative long leverage. A break could force a long squeeze and drag the price lower.

Sellers may be waiting for this trigger. If $0.020 fails, the liquidation loop accelerates the move.

On the flip side, a clear close above $0.024 liquidates most major Monad short clusters. That would confirm the breakout and open higher levels.

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Key Monad Price Levels for Bulls and Bears

Monad trades between two levels that decide direction. Above $0.024, the breakout is active. The $0.029 area confirms momentum and could lead the move towards $0.040.

Below $0.020, the structure weakens. That exposes $0.016 and invalidates the pattern, breaking down the head of the inverse pattern. It turns the chart bearish again. Until then, the pattern leans bullish but barely.

Right now, the market is waiting for the neckline or the long squeeze trap. One breakout unlocks the 64% move. One bear-led breakdown triggers the squeeze and makes $0.016 attainable.