Mantle (MNT) experienced a sharp 13% decline on Friday, February 21, raising concerns over its near-term recovery. Despite strong trading volume in recent weeks, technical indicators suggest that a swift rebound is unlikely, with bearish momentum dominating the altcoin’s price action.
Mantle’s Price Structure Signals Further Downtrend
MNT’s weekly swing levels remain key to understanding its trajectory. Notably, the April 2024 high of $1.51 and the January 2024 low of $0.56 indicate a bearish trend. Since then, MNT has recorded a marginally lower low at $0.549 and a lower high at $1.39, reinforcing the downtrend. Additionally, a daily market structure breakdown occurred after MNT fell below $1.03, confirming the bearish sentiment.
The recent price drop led MNT to test the 75% retracement level of its previous range formation at $0.83, which is now acting as support. In the coming days, the $0.915–$0.956 zone is expected to function as a supply zone. Swing traders may look for breakdown opportunities in lower timeframes to enter short positions.
Technical Indicators Support Bearish Outlook
Momentum indicators align with the bearish market structure. The Chaikin Money Flow (CMF) sits at -0.1, signaling strong capital outflows. Meanwhile, the Directional Movement Index (DMI) indicates a robust downtrend, with both the ADX and -DI remaining above 20.
Further insights from the liquidation heatmap show that a liquidity cluster around $1 was wiped out during the recent sell-off. The liquidation cascade contributed to MNT’s sharp decline to $0.83. Following such a strong move, price consolidation around the $0.90 level is likely, allowing liquidity levels to build before the next impulse move.
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Key Levels to Watch
Swing traders should monitor the $0.95–$1.03 range as a potential reversal zone. A move beyond $1.10 would invalidate the current bearish setup, making it a suitable level for stop-loss orders. For now, Mantle remains under pressure, and traders should exercise caution while navigating its volatile price action.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
