Mantle Price Climbs 10% in 24 Hours, Here’s Why MNT is Up

Key Takeaways

• Mantle was trading at $0.79, up 15% in a week.
• The Mantle Network airdrop drives increased network activity.
• Whales have accumulated MNT, indicating bullish market sentiment.

Mantle’s price has recovered 44% since its July 5 low. Just in the past 24 hours, the token increased by 40%.

What could be the reason behind this rise, and what’s next for MNT?

What Drove The Rise? 

Mantle Airdrop

Mantle Network’s Metamorphosis started an airdrop campaign on July 17. This offers users the opportunity to earn COOK tokens over 100 days by staking Mantle Staked Ether (mETH) and participating in daily activities. Users must connect their wallets on the Mantle airdrop page to take part. 

By earning Powder daily through mETH positions on partner protocols, users can convert Powder into COOK tokens. There are 200 million COOK tokens allocated for the campaign. The initiative aims to enhance Ethereum’s scalability and security while encouraging active participation in the network. Additional incentives include extra COOK for the Puff community and Powder through referrals.

Whales Accumulated

Data from IntoTheBlock  indicates a significant uptick in activity, with daily active addresses rising by 29% and new addresses increasing by 44% in the week leading up to July 19. 

Additionally, a spike in large holder netflow  suggests that whales are accumulating the token. Increased network activity and large holder interest appear to be driving MNT’s recent price surge.

It went from a low of 583,000 MNT on July 16 to a high of 8.56 million MNT on July 19. Even though positive netflow usually indicates incoming selling pressure, the reason behind MNT transfer to exchanges could be attributed to the airdrop campaign and is interpreted positively. 

MNT Price Analysis 

MNT marked its all-time high of $1.51 on April 7, concluding its bullish phase from October last year. Since then, it has been in an uptrend until July 5, when it fell to a low of $0.60. It found support at the 0.618 Fibonacci retracement, usually a level at which corrective stages end. 

Mantle’s price rose to a high of $0.86, which was still advancing as of July 19. However, the four-hour chart’s RSI reaching 78% signals that MNT is overbought and may face an imminent downturn.

Should the price establish a higher low, ideally above $0.72, during this anticipated pullback, it would confirm the onset of a new uptrend. This could propel MNT to $1 or higher. Such a movement would represent the first five-wave impulse of a potentially enduring bull phase, potentially driving Mantle to a new all-time high later in 2024.