Profit-Taking Clouds Mantle’s 11% Surge — Is a Pullback on the Horizon for MNT?
Mantle (MNT) has recently recorded an impressive 11.79% price increase, reaching a peak of $1.96. The rally was fueled by a significant resurgence in market demand, particularly from both retail traders and large-scale investors, commonly known as whales. However, as prices climb, the threat of profit-taking has emerged, raising concerns about the sustainability of this bullish momentum.
Momentum Builds Amid Renewed Market Interest
After dipping to a low of $1.51, MNT staged a robust recovery, climbing steadily over three consecutive days. At the time of writing, the token was trading at $1.94, supported by a dramatic 82% surge in trading volume, which rose to $362 million within 24 hours. This spike in activity signals a renewed interest in the altcoin, with traders returning to the market in anticipation of further gains.
A key driver behind this surge has been an inflow of capital into both the spot and futures markets. On-chain metrics show that major holders accumulated 2.7 million MNT tokens, which exceeded the 2.3 million tokens sold. This net positive inflow of 400,000 MNT underscores strong buying pressure and bullish sentiment among top-tier investors.
Retail Traders Join the Accumulation Trend
Retail participation has also played a crucial role in Mantle’s upswing. Traders seized the opportunity presented by the dip, contributing to a net positive market delta over three straight days. For instance, in the past 24 hours alone, buy volume reached $1.3 million, while sell volume came in at $1 million, resulting in a net delta of $300,000 — a clear indication of increased demand.
Futures Market Activity Confirms Bullish Outlook
Activity in the derivatives market further supports the bullish case. On platforms like Hyperliquid, MNT futures saw $6.93 million in long contracts versus $5.2 million in shorts over the last day. This trend led to a Net Position Change of +1.7 million, highlighting a strong inflow of capital and heightened trader engagement.
Typically, when long positions dominate futures trading, it reflects growing confidence in upward price movement. In Mantle’s case, this trend suggests that traders are positioning themselves for further gains, with many eyeing the $2.30 resistance level as the next bullish target.
Profit-Taking Begins to Surface
Despite the positive momentum, early signs of profit-taking are starting to emerge, potentially signaling a cooling-off period. According to on-chain data, Mantle recorded a notable net inflow into spot exchanges, totaling $8.3 million — a 3591.28% spike compared to prior levels. This surge in inflows suggests that more holders are moving tokens to exchanges, likely with the intention of selling.
Historically, such behavior has preceded price retracements, especially when combined with increased whale activity aimed at liquidating gains. If this selling pressure intensifies, MNT could face a pullback toward the $1.59 support zone.
Technical Indicators Support Near-Term Bullishness
From a technical standpoint, Mantle’s stochastic RSI recently made a bullish crossover, reaching a value of 16. This crossover often signals a potential reversal or continuation of an uptrend. Additionally, the Relative Strength Index (RSI) rose to 51, nudging into bullish territory. If current buying interest sustains, the RSI could confirm further upside momentum, increasing the likelihood of a breakout above $2.00.
However, for the bullish scenario to remain intact, MNT must maintain a daily close above the $1.90 threshold. A failure to hold this level may embolden sellers, potentially dragging the price back down to its recent support floor.
What Could Influence MNT’s Price Going Forward?
Several key factors could shape MNT’s trajectory in the coming days:
1. Market Sentiment: Broader market conditions, especially Bitcoin’s performance, often influence altcoin trends. A downturn in the overall crypto market could trigger a sell-off in MNT regardless of its individual strength.
2. Whale Behavior: Continued accumulation by whales would support price stability and possibly further gains. Conversely, a shift back to outflows could amplify downward pressure.
3. Volume Consistency: Sustained high trading volumes typically confirm the health of a rally. Any sharp decline in volume might indicate weakening interest and a potential reversal.
4. Resistance Breakout: Overcoming the psychological barrier at $2.00 and holding above it could open the door for a run toward $2.30 and beyond.
5. Macroeconomic News: Regulatory developments or macroeconomic shifts, such as interest rate decisions or geopolitical tensions, could impact risk appetite across crypto markets, including MNT.
Is $2.30 a Realistic Short-Term Target?
Given the current momentum and strong market participation, $2.30 remains a plausible short-term target — provided that demand remains robust and sellers do not overwhelm the market. However, traders should remain cautious, especially with the looming threat of profit-taking that could stall or reverse the uptrend.
Conclusion: Bullish Momentum Faces Crucial Test
Mantle’s recent 11% gain reflects strong market interest, underpinned by positive technical indicators and increased accumulation by both whales and retail traders. While the rally remains intact for now, looming profit-taking and rising spot inflows suggest that MNT is at a critical juncture.
To sustain its upward trajectory, the altcoin must hold above $1.90 and maintain strong volume. If these conditions are met, a rally toward $2.30 remains achievable. However, a failure to do so could invite a correction, pulling prices back toward support at $1.59.
Investors and traders should closely monitor whale activity, spot exchange flows, and overall market sentiment in the coming days, as these will likely determine whether MNT continues its ascent or succumbs to short-term selling pressure.