Coinbase sparks Mantle rally: Will MNT break $1.39 resistance?

Key Takeaways

MNT rallied 12.5% after Coinbase announced plans to list Mantle Perpetual Futures for trading on the 21st of August. Futures Open Interest soared 22.74% to an all-time high of $122.67 million.

Mantle [MNT] rallied 12.55% after successfully holding $0.3 support, reaching a local high of $0.38 before slightly retracing to $0.37 at press time. 

Over the same period, the altcoin’s trading volume jumped 70.23% to $645 million, while market cap surged 11% to $4.62 billion.

When volume and market cap rise in tandem, it reflects solid capital inflow and growing on-chain activity. 

But what triggered this uptick?

AMBCrypto observed that Coinbase’s plan to list Mantle Perpetual Futures primarily drove the altcoin’s recent price upsurge. 

In a significant development, Coinbase announced it will add support for Mantle Perpetual Futures on Coinbase International Exchange and Coinbase Advanced. 

The altcoin’s Perpetual trading will officially be available for trading on the 21st of August. Following the announcement, demand for MNT recovered across the market. 

Mantle Futures Open Interest skyrockets 

Significantly, as the market recovered, investors rushed into the Futures market to position themselves, awaiting the next move. 

According to CoinGlass, Mantle’s Futures Open Interest surged 22.74% reaching an all-time high of $122.67 million.

At the same time, Derivatives volume jumped 15.2% to $131 million, indicating growing participation in the Futures market. 

Meanwhile, the altcoin’s Long/Short Ratio surged to 1.09, with longs accounting for 52% of the total Futures contracts.

When longs dominate, it suggests that investors rushed into the market to bet long, eyeing more gains.

Spot market buyers make a comeback

Unsurprisingly, after taking a step back from the spot market days ago, buyers finally returned to buy, probably in FOMO. 

According to Coinalyze, Mantle saw 519k in Buy Volume compared to 345k in Sell Volume over the past day. As a result, the altcoin recorded a positive Buy Sell Delta of 171k, a clear sign of spot aggressive accumulation. 

Additionally, exchange activities also echoed the trend with Antle’s Spot Netflow on the 19th of July, indicating a higher outflow compared to inflows. 

Often, when netflow holds within negative territory, it suggests that buyers are dominating the spot market, usually a prelude to higher prices. 

What momentum indicators say

According to AMBCrypto’s analysis, Mantle rallied as speculative buyers rushed into both the Futures and spot markets. 

For that reason, the altcoin’s Relative Strength Index (RSI) surged to 74, nearing the overbought zone. Likewise, its Chaikin Money Flow (CMF) rose from a negative zone to 0.08, further confirming buyers’ dominance. 

If demand for the altcoin holds, Mantle will continue with the uptrend. The trend continuation will see MNT break $1.39 resistance, where it has faced multiple rejections, and eye $1.45. 

However, if the speculation fades as quickly as it emerged, the altcoin will retrace back to $1.20.