Mantle (MNT) Soars 20%: Bulls Charge Toward $1 as Key Support Holds Strong
Mantle's native token MNT just ripped past a critical resistance level—and traders are betting this rally has legs.
The 20% surge puts MNT back in bullish territory, with eyes locked on that psychological $1 milestone. Forget 'slow and steady'—this is crypto, where 20% moves barely warrant a coffee break.
Key support reclaimed? Check. Momentum building? Obviously. Wall Street analysts still pretending they 'called it'? Always.
One thing's clear: Mantle's price action is writing checks the rest of DeFi might have to cash. Whether this holds or becomes another 'buy the rumor, sell the news' special remains to be seen—but for now, the bulls are running.
Mantle rebounds as interest in the token rises
Mantle’s derivatives market has experienced a significant comeback over the last 24 hours as the Open Interest (OI) increases 69% to $36 million. Such a strong rebound suggests that traders are increasingly betting on MTN extending the gains.
A subsequent increase in the futures funding rate from negative territory to 0.0099% backs bullish sentiment.
According to CoinGlass data, no long position holder has been liquidated over the past 24 hours compared to approximately $199,000 worth of short position liquidations.
Mantle derivatives market data | Source: CoinGlass
Technical outlook: Mantle offers bullish signals
Mantle price remains bullish at the time of writing, exchanging hands at around $0.86. The token holds above key support levels, including a recently broken descending trendline, the 200-day Exponential Moving Average (EMA) at $0.75, and the confluence formed at $0.71 by the 50-day EMA and the 200-day EMA.
The Relative Strength Index (RSI), which has rebounded into bullish territory at 64, reinforces the strong bullish grip. If the RSI upholds the uptrend toward overbought territory, it WOULD suggest a surge in buying pressure amid bullish sentiment.
Mantle’s bullish structure has the backing of the SuperTrend indicator, which triggered a buy signal on July 12 when the price flipped above the indicator, changing its color to green from red.
The SuperTrend is a trend-following indicator that incorporates the Average True Range (ATR) to gauge market volatility. It functions as dynamic support or resistance, which could explain Mantle’s bullish reaction following its emergence.
MNT/USDT daily chart
Still, traders should temper their bullish expectations considering the Money Flow Index (MFI) indicator’s significant downswing from overbought territory the previous month to NEAR the oversold region as shown on the daily chart.
Key areas of interest to traders are the resistance at $0.85, which has been tested but not broken. If broken, Mantle could accelerate the rally toward the next target at $1.00. On the flip side, the 50-day, 100-day, and 200-day EMAs could serve as tentative support levels in case of a surge in profit-taking, or a change in market dynamics across the cryptocurrency market.
Open Interest, funding rate FAQs
How does Open Interest affect cryptocurrency prices?
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
How does Funding rates affect cryptocurrency prices?
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
