Deep Dive
1. Technical Breakdown (Bearish Impact)
Overview: MON trades at $0.00701, below all key moving averages (7-day SMA: $0.00773; 30-day SMA: $0.00952). The RSI-7 at 22.13 signals extreme oversold conditions, but momentum remains weak with a negative MACD histogram (-0.0000496).
What this means: Oversold RSI typically suggests a potential bounce, but sustained closes below the 200-day SMA ($0.01719) and Fibonacci 23.6% level ($0.01166) indicate entrenched bearish sentiment. The 24h volume of $998K (down 9.1%) reflects fading buyer interest.
What to watch: A break above $0.00773 (7-day SMA) could signal short-term relief. Failure to hold $0.00701 risks a drop to the November 2025 low of $0.00682.
2. Arthur Hayes’ Tokenomics Critique (Bearish Impact)
Overview: On December 1, Arthur Hayes reiterated warnings that MON’s “high fully diluted valuation ($3.08B) and low circulating supply (10.8%)” make it vulnerable to selloffs as locked tokens unlock starting mid-2026 (Hayes).
What this means: Hayes’ influence has magnified existing fears about MON’s token distribution, where 50.6% of supply is locked for insiders. This narrative has deterred new buyers and encouraged profit-taking among early investors.
3. Liquidation Dynamics (Mixed Impact)
Overview: A whale holding a 1.81M MON short ($7.67M) has pressured prices, while retail traders faced $1.9M in long liquidations on November 30 (Finbold).
What this means: Concentrated short positions and leveraged long unwinding created a feedback loop of selling. However, the whale’s overall portfolio remains profitable (+$2.08M), reducing incentives to cover shorts immediately.
Conclusion
MON’s decline reflects technical breakdowns, influential bearish commentary, and derivatives-driven volatility. While oversold conditions could spark a bounce, the token’s high FDV and unlocking schedule pose structural risks. Key watch: Monitor December 15–17 for potential sell pressure as CoinW’s zero-fee trading campaign concludes and staking rewards unlock.