Mantle (MNT) Price Drops 13%: Bearish Signals Emerge

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Todor Tsonev
22 February, 2025, 15:55
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Mantle (MNT) Faces Bearish Pressure After 13% Drop: What’s Next for the Altcoin?

Mantle (MNT) experienced a sharp 13% price drop on February 21, and despite strong trading volume in recent weeks, the altcoin's prospects for a quick recovery seem uncertain. Recent price action is showing multiple bearish signals that suggest further consolidation or downward movement might be in store for MNT.

MNT's Price Action: Bearish Signals on the Charts

On the weekly timeframe, key swing levels for Mantle were set at $1.51 and $0.56 in April and January of 2024, respectively. Since then, MNT has posted a marginally lower low at $0.549 and a lower high at $1.39, signaling a bearish market structure.

On the daily chart, the drop below $1.03 confirmed a break in the market structure, reinforcing the bearish outlook. MNT then fell to the 75% level of its previous range at $0.83, where it is currently testing the support. Given the current bearish sentiment, the price is expected to face resistance in the $0.915-$0.956 zone, which is anticipated to serve as a supply zone.

Swing traders might look for a lower timeframe breakdown for potential short trade entries around these levels.

Key Levels to Watch:

Resistance Zone (Supply Zone): $0.915 - $0.956
Support Zone: $0.83 (testing the 75% level of the former range)
Bearish Continuation Target: Potential revisit to $0.56 (previous swing low)

Bearish Indicators:

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The technical indicators are in alignment with the bearish setup:

The Chaikin Money Flow (CMF) stands at -0.1, highlighting significant capital outflows, which typically indicates a lack of buying interest and further bearish pressure.
The Directional Movement Index (DMI) shows a strong bearish trend, with both the ADX and -DI above 20, confirming the ongoing downtrend on the daily chart.

Mantle's Liquidation Heatmap:

The liquidation heatmap reveals that a cluster of liquidity around the $1.00 level was wiped out during the altcoin’s recent drop, likely triggering a cascade of long liquidations. This contributed to the recent dip to $0.83.

After such a sharp drop, MNT is expected to consolidate around the $0.90 mark, allowing for the build-up of liquidity levels above and below the price. This consolidation phase could potentially lead to a move to test both the higher and lower pockets of liquidity before making its next major move.

What’s Next for MNT?

Given the recent price action and the liquidation dynamics, MNT is likely to remain range-bound between $0.83 and $0.95-$1.03 in the near term. Swing traders can wait for a breakdown to enter short positions or look for a move towards $0.95-$1.03 before making a decision.

Short-Term Strategy: Wait for a move towards $0.95-$1.03 for possible short trade entries.
Invalidation Point: A move above $1.10 would invalidate the bearish setup, serving as a stop-loss trigger for short trades.

Conclusion:

Mantle (MNT) is under significant bearish pressure, with the daily and weekly charts showing lower highs and lower lows. Technical indicators and liquidation data align with the potential for further downside movement. If the price fails to reclaim resistance at $0.95-$1.03, MNT could continue to consolidate or drift lower, potentially targeting previous support levels. Traders should keep an eye on the price action around key support and resistance zones to gauge the next move for MNT.