Mantle (MNT) has been facing significant headwinds in the cryptocurrency market, experiencing a sharp downturn driven by broader market sentiment and intense selling pressure. Investors are keenly watching as MNT navigates a challenging landscape, with key technical indicators signaling a continued bearish trend.
Unpacking Mantle's Recent Downturn
In recent trading sessions, Mantle (MNT) has seen its value decline by over 5% in just 24 hours, accompanied by a dramatic 83% surge in daily trading volume – a clear indication of heavy sell-offs. This downtrend was largely exacerbated by a broader market sell-off and considerable volatility in Bitcoin (BTC) on November 2nd, which saw the crypto sphere shed $100 billion in market capitalization. Fearful conditions permeated the market, pushing MNT prices towards the critical $1 mark. The altcoin’s prior support at $1.58, which bulls valiantly defended throughout October, ultimately gave way, leading to a recent swing low of $1.18.
Technical Outlook and Future Trajectory
The technical indicators paint a clear picture of bearish dominance. The Chaikin Money Flow (CMF) has dipped below -0.05, reflecting substantial capital outflows and persistent selling pressure. Concurrently, the Directional Movement Index (DMI) shows the bearish -DI above 20, with the Average Directional Index (ADX) also trending higher, confirming a strong bearish trend on the daily timeframe. Short-term market sentiment has also turned negative, evidenced by a steady decline in Open Interest (OI), signaling weakening confidence and increased liquidations. While the prevailing trend remains decidedly downward, technical analysis suggests a potential short-term price bounce to the $1.4 overhead resistance zone. However, this rebound is likely to be a temporary reprieve before MNT faces further bearish impulses, with the next crucial support level identified at $1.1.
