Mantle was one of the handful of tokens in the top 50 crypto assets that had a positive performance over the past week. MNT was up 9.13% in a week and 1.37% in 24 hours.
At the same time, the daily trading volume fell by 13%. This was likely due to the uncertainty around Bitcoin as the leading crypto asset fell to the $85.7k area on Monday and struggled to recover.
Mantle [MNT] has outperformed Bitcoin (down 5.55% in a week), but is this a sustainable trend? AMBCrypto looked into the price charts to find out.
Solving the Mantle trader dilemma
The daily chart’s technical indicators were encouraging. The DMI showed a strong uptrend in progress, with both its ADX (yellow) and +DI (green) above 20.
The CMF had also been above +0.05 over the past week to show sizeable capital inflows, though this has slowed down a bit.
Structure-wise, MNT bulls had reason to be hopeful.
While the $1.375 swing high remained unbeaten, the internal structure has shifted bullishly. This could set up a breakout.
The 1-hour chart also showed a bullish structure. Mantle has slowed down after its rally from the 5th to the 13th of December, and found support at the $1.24 area. The DMI showed a strong trend was not in place.
The CMF’s -0.08 reading indicated elevated selling pressure in this lower timeframe.
Putting the clues together
This situation is not easy to resolve. There is market-wide fear and a wobbly Bitcoin [BTC], and MNT is trending in December.
The swing structure was not yet bullish, with $1.375 being a key resistance. Until it is breached, bears have reason to maintain their bias.
Traders’ call to action – MNT traders need to wait for THIS...
The daily timeframe showed steady capital inflows and a bullish shift in December for the altcoin. Bitcoin might climb toward $94k to hunt the liquidity built up there, which could boost short-term MNT sentiment.
Both the bullish and bearish arguments have weight. Based solely on MNT’s price action across timeframes, the bullish scenario is more likely.
A breakout past $1.375 and a subsequent retest as support would offer a buying opportunity.
Traders need to have clear invalidations before looking to go long. For example, a drop below $1.21-$1.23 would spell trouble for the bulls in the short term.
Final Thoughts
- Mantle has been one of the few top 25 crypto assets to have performed bullishly over the past week.
- It was approaching a key swing high resistance, and market-wide sentiment did not seem to favor the bulls now.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
