Mona Coin saw a period of sideways action during 2019 as it opened the year at a price of $0.627 and closing at a price close to $0.76 - equaling almost a 20% price rise over the year.

It is extremely vital that I point out the fact that MONA did in fact increase by an enormous 740% during the year as it rose from the February 2019 price low to the mid-2019 price high of around $3.60.

However, after reaching this high, MONA rolled over and started to fall back toward the opening trading price for the year. You can see this on the chart below;

Looking at the chart above, we can clearly see the epic price surge that Mona saw during the year. However, we can also see the subsequent price plummet during the remainder of 2019 as it returned to its opening trading price. Nevertheless, MONA has started to surge throughout 2020 and has managed to increase by a total of around 264% already to reach a high of around $2.60! A great start to the new decade.

Mona coin is not a project that is driven by technological breakthroughs or highly charged developmental progress. Instead, it is mainly driven by the community behind it - that absolutely love MONA! This is pretty similar to Dogecoin and the similarities do not stop there as they are both birthed from their separate internet meme sensations! 

Regardless of this, MONA probably won’t have any great developmental upgrades this year. There is not a roadmap for us to look forward to new releases and no exciting projects on the horizon. However, the community will certainly drive MONA to new heights when altcoin season does hit, and believe me - it will hit this year

For the reasons stated above, and more discussed below, I believe that MONA has the potential to surge by a total of 150% in 2020 to reach my target price of $5.00 at some point during the year. Bear in mind that the cryptocurrency has already moved by a total of 180% this year already so the total price increase for 2020 would equate to around 580% if MONA does hit my 2020 target.

In this article, I’ll firstly cover a range of topics that I believe will influence MONA in reaching my $5.00 target during 2020 and then analyze MONA on the daily chart to highlight some areas of resistance on the way toward the target.

What Is Mona?

Mona coin is another “Dogecoin like” cryptocurrency as it was originally birthed from an internet meme called Mona, a very famous ASCII character cat. The project is one of the veteran cryptocurrencies after it was launched on January 1, 2014, by anonymous developers who simply go by the pseudonym or “Mr. Watanabe”. 

Mona coin is even slated to be Japan’s first-ever coin and it still remains highly popular in that region of the world today.  

It is another cryptocurrency that derives its value from the sheer drive of its own community as they continue to create platforms to give use cases for their coin. For example, Monappy allows users to tip streamers with the token easily. It also allows users to trade their Mona for digital assets and electronics.

This is converse to typical cryptocurrencies which relies on a strong development team to keep pushing improvements to keep the crypto community interested in their project. 

Being situated and birthed in Japan, it is regulated and approved by the Financial Services Authority (FSA) in Japan which has led to Mona coin being an option for cash withdrawals at some ATMs in their country.

Mona coin is different from Dogecoin as it uses a Lyra2RE (v2) hashing algorithm. This algorithm is designed to battle in the fight to keep ASIC hardware away from centralizing its economy. It also manages to adjust the difficulty of mining after every block by using the Dark Gravity Wave v3 algorithm. 

The fact that Mona coin manages to keep ASICs away is a great route to go down because it keeps the community in control over the token mining economics. It also allows anybody with a CPU to easily mine Mona coin at any given time.

To find out more about Mona coin, take a look into this article.

Should We Worry About Low Developmental Activity?

If we were to take a look at the Santiment developmental activity for Mona, it would not paint a pretty picture. It shows sporadic bouts of developmental commits which is evidence to suggest that the team are not really doing much to improve their codebase;

However, although the development activity is pretty low, MONA is always keeping up with the strongest developmental progression and it has already added supporting features for Swgwit as well as being Lightning network ready. 

We need to remember that Mona is not a cryptocurrency that is driven by developmental and technological breakthroughs. Instead, it is rather a community-driven project, If the community demands an upgrade, the mysterious development team will most certainly follow through. We must not pay too much attention to this low dev activity and should always look to see if Mona coin has a strong presence within the social media circuits instead. 

If we were to take a look at the Google Trends for Monacoin we would see the following chart;

It shows that Mona coin still has a relatively high search trend and it has been increasing over the past few months which is a great sign to show that Mona coin is still within the minds of the community overall.

Mona Coin (MONA) Price Analysis

LONG TERM - DAILY CHART

What Has Been Going On?

Taking a look at the daily chart above, we can easily notice the epic surge that MONA experienced during 2019 as it reached the $3.70 high. In fact, we can even see that the majority of the price increase happened over a small period of only 2-days in June 2019.

On the way up, it ran into resistance at the bearish .618 Fibonacci Retracement level priced at $3.67. This long term bearish Fib Retracement is measured from the April 2018 high to the December 2019 low. 

After meeting this resistance, MONA rolled over and started to fall. It continued to decline until support was found at the .886 Fib Retracement level (drawn in blue) priced at $0.744 where the market decline stalled. 

During 2020, we can see that MONA rebounded from the aforementioned $0.744 support and started to rocket higher into the 2020 high of $2.70 to create a fresh 7-month price high.

Are We Bullish Or Bearish (as of February 2020)?

As of February 2020, we are most certainly bullish, especially after created a multi-month price high in 2020. The cryptocurrency would need to drop beneath $1.50 before the bull run is in danger of becoming invalidated. It would need to fall further beneath $1.00 before being in danger of turning bearish.

If the sellers do push lower, the first level of support is located at $2.00. This is followed with support at $1.93, $1.73 (.5 Fib Retracement), and $1.50 (.618 Fib Retracement).

If the bears continue to drive MONA further beneath $1.50, additional support can be found at $1.30 (200-days EMA), $1.16 (.786 Fib Retracement), and $1.00. This is then followed by support at $0.744.

Where Is The Resistance On The Way Up TO $0.020?

On the other hand, if the buyers start to charge higher again, the first level of resistance is located at $2.50. This is then followed with resistance at $2.70, $2.86, and $3.00. The resistance at $3.00 is further bolstered by the long term bearish .5 Fibonacci Retracement level priced at $3.03.

If the bulls continue higher from $3.00, resistance is then located at $3.26 (short term 1.272 Fib Extension), $3.54 (1.414 Fib Extension), and $3.67 (bearish .618 Fib Extension). Above this, higher resistance lies at $3.94 (short term 1.618 Fib Extension). 

If the buyers continue to drive MONA above resistance at $4.00, we can expect higher resistance at $4.32 (1.272 Fib Extension), $4.58 (bearish .786 Fib Retracement), and $4.71 (1.414 Fib Extension). If the bulls can clear these levels of resistance, they will be clear to make an attempt at my 2020 target of $5.00.

Conclusion

MONA is a cryptocurrency with very different driving characteristics than most projects that we see. The majority of cryptocurrencies is led by spectacular development teams that are all trying to push the envelope of blockchain technology forward. The supporters of these coins choose to invest because they believe that the technology the team is working on will have positive benefits for the price in the future.

On the other hand, MONA is a project with pretty much no development. Instead, the supporters of MONA actually LOVE the project. They have a direct connection with MONA rather than just an investment to buy and hold. The community is what will drive MONA higher during 2020, not any developmental activity.