Why Mantle is eyeing $1.1 retest after MNT loses KEY support
The declining Open Interest was a bearish sign for the market. The long liquidations in recent days also contributed to the downward pressure on MNT.
Key Takeaways
Why are Mantle prices down?
The market sell-off on Monday accelerated the downtrend of MNT, driving prices to a swing low of $1.18.
Where is MNT likely to go next?
The prevailing trend is downward, but a short-term price bounce to the $1.4 supply zone is possible before the next bearish impulse move.
Mantle [MNT] has fallen 5.11% in the past 24 hours, and its daily trading volume has increased by 83% over the previous day. This was a sign of heavy selling in recent trading hours.
The Bitcoin [BTC] volatility on the 2nd of November also pushed MNT prices lower.
The crypto sphere shed $100 billion in market cap, a 4% drop that saw $1.14 billion worth of positions liquidated in 24 hours. The fearful conditions and Mantle’s prevailing downtrend meant that the altcoin would likely face more losses in the coming days.
Fearful sentiment and heavy selling drive MNT prices toward $1
Mantle bulls fought valiantly to defend the $1.58 support level in October, and their efforts were successful until the final week of the month. Bitcoin’s price rejection and downturn from the $116k resistance took MNT below $1.58.
The recent sell-off saw MNT reach a swing low of $1.18. The next support level of note was at $1.1. This level served as a launchpad to the September rally. Meanwhile, the $1.4 level was the overhead resistance to watch out for.
The technical indicators showed that bears were in the driver’s seat of the MNT market. The CMF dropped below -0.05 to reflect intense capital outflows and selling pressure.
The Directional Movement Index had its -DI (red) above 20, at press time, with the ADX (yellow) moving higher as well.
This was an indication that the trend was bearish on the 1-day timeframe.
In the short term, market sentiment turned bearish.
Recent price declines were matched by a steady drop in Open Interest (OI), indicating that speculators were either liquidated or chose to stay out due to heightened volatility.
This decline in OI signaled weakening confidence, while long liquidations added further downward pressure on MNT.
Although a brief rebound to $1.4 is possible, the overall trend remains bearish.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
