Mantle Set to Retest $1.1 Support Following MNT's Loss of Key Level

Mantle (MNT) has encountered significant downward pressure, with the cryptocurrency experiencing a 5.11% drop in value over the past 24 hours. As the overall market sentiment turns fearful and selling intensifies, MNT’s price has dipped towards critical support levels. Traders are eyeing a potential bounce back in the short term, but the prevailing trend indicates further losses may be ahead.

Key Takeaways

MNT saw a market sell-off on Monday, dropping to a low of $1.18.
While there is potential for a short-term rebound to the $1.4 resistance zone, the long-term outlook remains bearish.
Daily trading volume for Mantle surged by 83%, indicating increased selling activity.
Increased volatility in Bitcoin (BTC) on November 2 contributed to the declines in MNT prices.
The broader cryptocurrency market lost $100 billion in market cap, reflecting a 4% decrease and the liquidation of $1.14 billion in positions within 24 hours.

Mantle drops 5% in 24 hours as heavy selling pushes prices toward $1 support

Market Sentiment and Price Declines Push MNT Towards Key Support

Mantle 1-day Chart
Source: MNT/USDT on TradingView

In October, Mantle's bulls attempted to protect the $1.58 support level and succeeded for most of the month. However, the recent downturn in Bitcoin’s price from the $116k resistance level caused MNT to fall below its support. The recent market turmoil forced MNT down to a swing low of $1.18, with an important support level identified at $1.1. This level previously served as a launchpad for a rally in September, while traders should watch the $1.4 level as a key resistance point.

Technical analysis indicates bearish momentum in the MNT market. The Chaikin Money Flow (CMF) has dipped below -0.05, signifying heavy capital outflows and increased selling pressure. Additionally, the Directional Movement Index shows the negative indicator (-DI in red) above 20, and the Average Directional Index (ADX in yellow) is also rising, confirming bearish conditions on the daily timeframe.

Mantle Coinalyze
Source: Coinalyze

In the near term, the market sentiment appears to lean bearish. Recent price decreases were accompanied by a steady decline in Open Interest (OI), indicating that market speculators have either been liquidated or are opting to avoid the heightened volatility. This fall in OI suggests diminishing confidence, while long liquidations have only added to the downward pressure on MNT.

Though a brief recovery to the $1.4 level is still a possibility, the overarching trend remains negative.

Disclaimer: The information provided in this article represents the writer’s opinion and does not constitute financial or investment advice.