After a week of bearish price action, Mantle (MNT) was showing early signs of a potential reversal at press time. This, as buyers seemingly regained control across the board.
MNT posted significant daily gains recently, pushing the token above both its 20-day and 50-day exponential moving averages (EMAs). The move marked a key shift in short-term momentum after a prolonged period of selling pressure.
Meanwhile, a hike in whale activity, positive funding rates, and a spike in volatility lent some strength to the bullish setup. Hence, the question – Could the prevailing bullish momentum extend to test the $0.50-psychological resistance level. Let’s find out!
MNT reclaims key moving averages
MNT’s latest rally pushed its price above the 20-day and 50-day EMAs, two closely watched indicators for short- and medium-term momentum.
Reclaiming both averages may be evidence that buyers are beginning to regain control after the altcoin’s recent bearish run. A sustained move above these levels could strengthen the case for a broader recovery.
The next major focus for bulls will now be the $0.50-level.
Whale activity signals growing confidence
At the time of writing, whale activity also seemed to support a potential reversal. According to CryptoQuant, for instance, Mantle recorded an increase in large orders around its press time price. This hinted at larger market participants becoming more active.
Similar scenarios in the past have often preceded bullish rallies.
Here, it’s worth noting however that if these larger orders continue to support demand, MNT could gain enough momentum to hit the next major liquidity zone.
MNT volatility hits monthly high
The ongoing reversal has been occurring alongside a sharp uptick in market volatility. In fact, MNT’s volatility index climbed to monthly-high levels, with price volatility touching 1.8%.
Usually, higher volatility often accompanies major changes in market positioning. In MNT’s case, the spike came alongside the price attempting to reverse its recent downtrend, potentially creating room for larger moves in either direction.
Positive funding favors market bulls
Derivatives data lent more weights to the altcoin’s bullish signals. Mantle’s funding rate seemed positive across all three major exchanges. This indicated that long positions may be paying shorts to maintain their exposure.
While positive funding does not guarantee further gains, it does imply that bullish positioning is widespread rather than isolated to a single trading venue.
$865K in liquidity could pull MNT towards $0.50
Finally, several liquidation clusters worth approximately $865K positioned above MNT’s current price could act as a price action catalyst.
These concentrations of leveraged positions are always regular targets for market bulls. Their presence increases the likelihood of the MNT’s price action retesting the zone.
All in all, If buyers maintain control above the reclaimed EMAs and positive funding persists, MNT could continue to climb towards the overhead liquidity clusters and potentially test $0.50.
However, a failure to hold could expose MNT to renewed selling pressure.
Final Summary
- MNT reclaimed its 20-day and 50-day EMAs as buyers attempted to reverse a week-long bearish trend.
- Network’s positive funding and $865K in overhead liquidation liquidity could accelerate MNT’s move towards $0.50.
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