Mantle (MNT) is about to adjust? Analyzing bearish signals

Mantle (MNT) has been trading in an upward channel since breaking out of a multi-month downtrend last week. On the daily chart, this altcoin has risen to the sky from a low of $0.72 to a two-month high of $0.85. After hitting that level, MNT encountered strong selling pressure, pushing the price back.

At the time of writing, MNT is trading at $0.796, rising to the sky 28.2% over the past seven days. Nevertheless, MNT maintains its upward momentum despite increased volatility in the market.

Whales Lead the Trend

According to data from CryptoQuant, whale traders have dominated the market over the past 30 days, setting the stage for a potential price rise of this altcoin.

Therefore, the recent rise may be the result of a prolonged accumulation process over the month by whales. This market scenario is clearly reflected in the fact that the average size of spot orders is mainly dominated by orders of high value.

When large holders dominate, it indicates that whales are actively participating in the spot market.

Average size of spot orders | Source: CryptoQuantAccording to flow data on exchanges, MNT has stable buy activity.

The report from CoinGlass shows that the net spot flow of MNT is -4.3 million dollars, which means that the amount of MNT withdrawn from exchanges is greater than the amount deposited.

The continuous negative flow implies that there is an accumulation process occurring, as traders often transfer tokens to personal wallets – a signal for a price rise.

Net flow | Source: CoinGlassTypically, when the net flow remains negative for an extended period, it indicates that most market participants are accumulating.

Historically, strong buying periods like this often precede price increases.

The derivatives market is even more optimistic

It is noteworthy that when observing the derivatives market, we see that most investors are choosing long positions.

Specifically, the open contract (OI) of Mantle has risen to the sky by 9.2%, reaching 28.8 million dollars at the current time, while the trading volume has skyrocketed by 285% to 47.8 million dollars.

The strong rise in the two indices reflects a significant increase in capital flowing into the futures market.

Source: CoinalyzeThe result is that the funding rate (funding fee) of this altcoin has continuously maintained in the positive zone. At the time of writing, the funding rate is around 0.01, confirming higher Long demand.

Source: CoinalyzeLong positions account for 75%, while short positions account for 24% of total futures contracts. Generally, high demand for long positions indicates that investors are actively betting on a rise to the sky.

Is the rise of MNT just temporary?

According to the analysis, Mantle has recorded a rise to the sky in the context of whales maintaining continuous accumulation activities.

As a result, the Relative Strength Index (RSI) of this altcoin has risen to the overbought zone, at around 70.2 at the time of writing.

Similarly, the Chaikin Money Flow (CMF) fluctuates in the positive range, further affirming the presence of buyers.

Source: TradingviewHowever, the RSI falling from 76 to 70 indicates that buying momentum is weakening, which explains the price decline on the daily chart.

However, to maintain the upward momentum, the buyers need to regain strength and push back the selling pressure that is gradually increasing. If they can achieve this, Mantle will regain the level of $0.8 and aim for the target of $0.87.

On the contrary, if unsuccessful, MNT will fall to a low of about 0.7 dollars.

Dinh Dinh