Ethereum L2 Token Mantle (MNT) Spikes 22% — Resistance Looms Near $1
Key Takeaways
- MNT emerged from a falling wedge pattern, with the MACD and AO indicators supporting further upside.
- The altcoin’s strongest support is around $0.75, while resistance at $0.94 could drag it back.
- If MNT faces rejection at resistance levels, it could retrace to $0.74 before attempting another breakout.
- Interested in buying or selling MANTLE MNT coin? Read our review of the best exchanges to buy and sell MANTLE MNT.
MNT, the native token of the Ethereum layer-2 (L2) network, has increased by 22% in the last seven days. This price increase makes it one of the best-performing altcoins in the top 100, only behind Toncoin (TON).
With trading volume rising, it appears that bulls are pushing for a sustained rally. However, while MNT’s successful breakout may continue for some time, it could pull back near a key resistance level. Here is why.
MNT Rebounds From March Lows
In January, MNT’s price showed readiness to retest its all-time high of April 2024. But on Jan. 6, it faced rejection near $1.41, eventually leading to a correction to 0.66 on March 9.
Since Sunday, March 9, Mantle (MNT) has recorded daily green candlesticks, except for a brief retracement on March 13. According to the daily chart, this rally appeared due to a breakout from the falling wedge on the timeframe.
A falling wedge is a bullish reversal pattern formed by two converging descending trendlines, representing lower highs and lower lows. Typically, this pattern signals a potential breakout to the upside.
As seen below, MNT’s price has broken above the wedge’s lower highs, indicating that the token’s value might continue to climb. The Moving Average Convergence Divergence (MACD), which measures momentum, is positive.
The positive reading of the MACD reinforces the notion that MNT might continue to climb. If this trend continues, the altcoin’s value will likely trade well above the $0.83 mark.
TVL Drops, Support Appears, Resistance Ahead
Interestingly, this price recovery has happened amid a severe decline in Mantle’s Total Value Locked (TVL), a metric used to measure the value of assets locked or staked in a protocol.
When it rises, it indicates rising user interaction with the protocol and increased liquidity deposited. Conversely, a decrease signifies a lack of confidence in the yield a protocol might offer.
Based on DeFiLlama’s data, Mantle’s TVL was over $600 million in November 2024. As of this writing, that value has plummeted to $262.22 million. Despite the drop, MNT’s rally may not be over yet, as its price movement weakly correlates with the TVL.
Meanwhile, CCN also examined the MNT’s short-term potential from an on-chain perspective. Specifically, we examined the In/Out of Money Around Price (IOMAP), a metric that spots resistance and support levels.
A higher volume of tokens “in the money” signals strong support, increasing the likelihood of a price rise. However, a higher volume of tokens “out of the money” indicates resistance, making upward movement more challenging.
Details from the on-chain analytic platform show that the major support for MNT is around $0.75, where 304 addresses accumulated 234.7 million tokens. This volume is higher than those purchased between $0.81 and $0.92.
Therefore, MNT’s price could break above $0.92, as insufficient selling pressure reduces the chances of a pullback.
However, the token could face resistance around $0.94 as the volume of unrealized losses outweighs those at the $0.75 support. Thus, if buying pressure subsides, MNT’s price might face rejection before it retests $1.
MNT Price Analysis: Target on Higher Highs
Meanwhile, another look at the technical perspective shows that the Mantle token price might continue to increase beyond $0.83. One indicator supporting this move is the Awesome Oscillator (AO).
Like the MACD, the AO also measures momentum. As the chart below illustrates, the AO reading was negative for most of last month till March 15. But today, the indicator’s reading is positive, suggesting that the trend is bullish.
Another indicator that aligns with this thesis is the Parabolic Stop-and-Reverse (SAR) indicator. Historically, when the dots of the Parabolic SAR are above the price, it indicates resistance.
But as of this writing, it is below MNT’s price. If this remains the same, MNT’s price might rise to the 0.618 Fibonacci level at $0.88.
Should buying pressure increase at this point, the cryptocurrency’s value could climb to $0.99.
However, MNT might encounter obstacles in breaching the 0.382 Fib level around $1.09.
If this happens, the token might erase some of its gains and potentially retrace to $0.74.
