Monad hits new TVL high at $868M – But demand hasn’t caught up to the rally

Monad [MON] opened the day higher, posting a gain on the back of fresh on-chain developments.

The sentiment leans bullish, yet MON must still clear several conditions on the chart, where a structural obstacle blocks the token from establishing a steady upward move.

On-chain capital flows lift Monad to a fresh high

Monad’s rally follows two on-chain metrics signaling capital moving into the market – fresh inflows into the ecosystem and a climbing stablecoin market capitalization.

Total Value Locked (TVL) measures a protocol’s net worth and tracks the on-chain capital flowing into the market, signaling whether investors hold a short-term or long-term outlook.

Inflows have climbed, and on the 10th of August, the metric pushed to a new high of $868.64 million over the past day before easing to $856.78 million at the time of writing.

The surge points to investors leaning toward a long-term outlook as they position for a further price rally.

Stablecoin market capitalization reflects the same shift, with the group’s supply surging to its highest level of the day and crossing $670.07 million at the time of writing.

Rising stablecoin supply on-chain raises the odds of that capital rotating into altcoins and lifting MON higher on the chart.

MON confronts a structural resistance barrier

MON is trading within an apparent bullish triangle. Price is consolidating lower between a descending resistance line and a horizontal support line.

The token is now attempting to breach the pattern’s resistance. A clean break would open the way for a rally toward new highs.

Two other outcomes remain in play. MON either consolidates deeper within the channel or breaks the base support and carves out fresh local lows.

The odds of an upswing materializing stay slim, as demand has largely flattened. Netflow over the past day shows demand edging out supply, though the reading came in thin at $530,420.

A rally would need buyers to lift their activity meaningfully, with cumulative growth reaching just $1.43 million over the past 15 days.

Indicators show strength but not conviction

The indicators carry some strength, though not the kind sufficient to push MON further. The accumulation/distribution line shows distribution deepening to -745 million in weighted volume.

That volume is trending lower on the chart, a bearish signal reinforced by a reading that stays firmly negative. Sellers have dominated MON over the past days and could reassert control.

The average directional index (ADX), which gauges the strength of a rally, is trending upward and signals an uptrend, but the momentum remains weak.

A meaningful reading usually appears once the ADX clears the 25 mark, and it currently sits at 15.

Until demand grows and reaches a high level, the rally is likely to stay weak, with further consolidation on the table.

Final Summary

• MON pushed higher as TVL reached $868.64 million and stablecoin supply crossed $670.07 million, signaling fresh capital entering the ecosystem.
• A sustained rally hinges on MON breaching its bullish triangle resistance, with thin netflow and an ADX at 15 pointing to demand that has yet to build.