Mantle drops 10% – Can MNT bulls defend key $1.74 support?

Key Takeaways

What does the Stochastic RSI suggest about Mantle’s short-term price movement? 

It signals a potential rebound as it bounces from oversold levels.

How are long-term investors responding to Mantle’s recent dip? 

They’re steadily increasing their holdings, indicating confidence in a future bullish reversal.

Mantle [MNT] has dipped by over 10% in the past 24 hours, at press time, after facing rejection at a key 20-day EMA resistance.

Despite the overall bearish sentiment, the Stochastic RSI was showing oversold signals, suggesting a possible price reversal.

This raises the question: will Mantle continue its downward trend or stage a short-term bullish bounce?

Bears hold the reins, but RSI lashes some hope!

The sharp rejection at the 20-day EMA has reinforced short-term selling pressure, pushing MNT deep into a downtrend channel.

However, the Stochastic RSI’s oversold reading offers a glimmer of hope for a possible short-term rebound. At press time, Mantle’s Stochastic RSI was bouncing from an oversold region, suggesting that bulls could chip in to defend the zone.

If the bulls manage to defend the 50-day EMA support at around $1.74, a relief bounce toward $2 could play out.  On the flip side, if the support fails to hold, MNT prices could dip further to test lower supports.

On-chain metrics lean bearish

With MNT’s recent price action sparking mixed signals, most of the tokens’ on-chain metrics spark bearish signals. Alongside the recent price drop, the number of short positions in the market is surging in both the spot and futures markets.

According to the recent CryptoQuant Taker Cumulative Volume Delta data.

Despite this, a notable increase in trading activity suggests that the market could soon see heightened volatility, especially if buyers step in at current oversold levels.

Spot Retail activity data indicates an increase in retail orders in the spot market. The increased retail orders with the current seller dominance and price drops suggest that short-term traders are gambling on the short positions. In short, they are anticipating further price drops.

However, with the stochastic RSI sparking reversal signals, chances for a potential short correction cannot be ignored.

MNT holders’ surge indicates a long-term bullish bias

With most of the indicators pointing to a bearish run continuation, Token Terminal Holders data point to a potential long-term bullish reversal.

The number of MNT holders has been on a steady surge, indicating that big players are betting on the potential reversals, unlike the short-term traders who are currently leveraging on volatility.