Mantle (MNT) is currently navigating a turbulent period in its market trajectory, with recent developments pointing to a strong bearish trend. After breaking below a critical support level at $1.58, MNT is now eyeing a potential retest of the $1.10 mark—a level that previously acted as a springboard during September’s rally. Despite the overall negative sentiment, there remains a slim chance for a short-term rebound toward the $1.40 resistance zone before the next potential downward leg.
In the past 24 hours, MNT has declined by over 5%, accompanied by an 83% surge in trading volume. This sharp increase in volume during a price drop suggests intensified selling activity, underscoring the mounting bearish pressure on the asset. The broader crypto market has also experienced turbulence, with a $100 billion drop in total capitalization and $1.14 billion in liquidations occurring within a single day. Bitcoin’s price volatility has further amplified downward pressure across altcoins, including MNT.
In October, Mantle bulls made several attempts to hold the $1.58 support line, managing to stave off a breakdown until the final days of the month. However, Bitcoin’s rejection from the $116,000 resistance level triggered a broader market decline, dragging MNT below its support. This breakdown has now positioned $1.18 as a temporary swing low, with $1.10 being the next key support level that traders are watching closely.
Technical indicators offer little optimism for a bullish reversal in the immediate term. The Chaikin Money Flow (CMF) has dipped below -0.05, signaling strong capital outflows and sustained selling activity. Additionally, the Directional Movement Index (DMI) reflects growing bearish momentum, with the -DI line above 20 and the Average Directional Index (ADX) rising—both indicators confirming a strengthening downtrend.
Open Interest (OI) metrics further support the bearish outlook. A steady decrease in OI over recent days reveals that traders are either exiting their positions due to uncertainty or being forced out by liquidations. This trend indicates waning confidence among speculators and adds to the bearish narrative. The prevalence of long position liquidations has only increased downward pressure on MNT’s price.
Despite the grim outlook, there remains a possibility for a short-term relief rally. Should buying interest emerge, MNT might attempt a bounce toward the $1.40 resistance level. However, this move would likely face strong selling pressure, as the overall market sentiment remains risk-averse and dominated by bears.
Looking ahead, the $1.10 support zone is pivotal. If MNT fails to hold this level, it could open the door for further losses and test lower price ranges not seen since the previous summer. On the flip side, a strong defense of this level could set the stage for a consolidation phase or even a modest recovery—provided broader market conditions stabilize.
From a strategic standpoint, cautious investors may prefer to wait for clearer signals of reversal before entering new positions. Momentum indicators and candlestick patterns on higher timeframes could provide better clarity on potential trend shifts. Until then, risk management remains essential for traders engaged with MNT.
Another factor contributing to MNT’s woes is the broader trend of capital rotation within the crypto market. As investors seek safer or more promising assets amid Bitcoin’s volatility, altcoins like Mantle are often among the first to suffer. This shift in capital flows has made it harder for MNT to find consistent buying support.
Additionally, macroeconomic factors such as interest rate expectations, global liquidity tightening, and regulatory uncertainty continue to weigh on investor confidence across the crypto space. These external pressures make it even more challenging for speculative assets like MNT to gain upward momentum.
In conclusion, Mantle is currently in a clear downtrend, with technical and market indicators aligning to suggest further downside risk. While a short-lived bounce to $1.40 is conceivable, especially if the market experiences a brief relief rally, the dominant narrative remains bearish. Investors and traders should monitor the $1.10 level closely, as a breakdown below this threshold could signal deeper losses ahead.