The newly launched Monad token is currently experiencing significant downward pressure as recipients of recent airdrops begin to sell their holdings. As it trades near $0.02, the community is left pondering whether the token can stabilize or if it will continue to decline further. A notable whale investor, who initiated a long position at $0.1449 on October 8, is now facing a floating loss exceeding $700,000, underscoring the overall market weakness surrounding this token.
The primary reason for the decline in MON price is the ongoing selling activity from airdrop participants. Many of these holders are opting to sell their tokens in the $0.02 to $0.04 range, which has severely limited any potential upward momentum. Additionally, the broader cryptocurrency market is also in a downturn. The current movement of Bitcoin nearing $85,000 has fostered a risk-averse sentiment, leading traders to prioritize liquidity over new investments as the holiday season approaches.
Before MON was officially listed on exchanges, it traded on prediction platforms at valuations suggesting a fully diluted valuation of approximately $12 to $14 billion. Initial expectations indicated that the token would debut between $0.04 and $0.065, buoyed by interest in its Ethereum Virtual Machine (EVM)-compatible performance. However, the price has settled closer to $0.02, revealing that the selling pressure has outstripped early enthusiasm.
From a technical perspective, the price chart of Monad reveals a pattern of lower highs and lower lows, indicating ongoing weakness. Although MON briefly surpassed the 20-day exponential moving average (EMA) and is currently testing the 50-day EMA, analysts have yet to see a definitive reversal signal. The token briefly surged during early trading but has since corrected sharply. With only 10 billion tokens in circulation and a market cap around $275 million, the price remains susceptible to even minor increases in sell pressure.
Looking ahead, the short-term outlook for Monad appears bearish, as the airdrop selling is likely to persist, potentially pushing the price back to the $0.01 level. Analysts suggest that there might be a small bounce to the $0.025 to $0.030 range if Bitcoin stabilizes. In the mid-term, the sentiment could shift to neutral or slightly bullish as ecosystem incentives and new listings could invigorate activity, with the price potentially stabilizing between $0.025 and $0.050. Over the long-term, should user adoption grow and real utility manifest, MON might achieve prices ranging from $0.10 to $0.25 or even higher in favorable market conditions.
