Mantle [MNT] is under strong bearish pressure. The altcoin lost its $0.6 support and fell to a low of $0.54, nearly erasing all recent gains.
As of this writing, Mantle was trading around $0.58 after plunging 11.4% on the daily charts. Over the same timeframe, the altcoin’s Spot trading volume surged 89% to $48 million, reflecting higher sell-side activity.
Why did Mantle decline?
AMBCrypto’s analysis observed that Mantle’s weakness arose from the derivatives market. According to CoinGlass data, the altcoin’s Open Interest (OI) plunged 14% to $50 million, while Derivatives Volume rose 210% to $39 million.
When OI falls, it signals reduced leveraged exposure. The falling OI alongside rising volume suggested that the market experienced position unwinding.
A look at Futures flow and Perpetuals Volume confirms this sentiment. According to Coinalyze data, Mantle’s Perpetuals Sell Volume on Bybit rose to $4.2 million, compared to $3.2 million in Buy Volume.
On the Futures side across tracked exchanges, Mantle saw $14.7 million in outflows compared to $10.7 million in inflows. As a result, the altcoin’s Futures netflow plummeted 1225% to 4 million, a clear sign of aggressive market exit.
Historically, massive sell-side activity in derivatives has led to short-term market shocks and price drops.
Spot demand offers much-needed relief
Interestingly, while traders in the derivatives market panicked, Spot sentiment remained unchanged.
A look at Spot netflow shows that this metric has remained negative for two weeks, suggesting exchange outflows have consistently outpaced inflows.
Over the past 24 hours, Spot netflow dropped to -$928K, with more than $10 million flowing out of exchanges. With buyers holding steady in the spot market, they offer Mantle much-needed relief by absorbing the rising pressure.
Can MNT stand firm?
Mantle’s downside momentum has strengthened extensively. Looking at the Relative Strength Index (RSI), the metric fell to 41, dipping into deep bearish territory.
RSI declined for six consecutive days following a bearish crossover. At these levels, RSI implied that bears are stronger and have significantly displaced bulls.
Such a structural setup has often preceded further weakness and more losses on the charts. Thus, if sellers continue to exert pressure, Mantle could fall to $0.54 again and likely revisit the $0.50 support level.
With bulls still active in the Spot market, they could, however, help invalidate this bearish outlook. If demand in the spot market holds, we could see MNT reclaim $0.6 and push for a daily close above $0.63.
Final Summary
- MNT plunged 11%, losing $0.6 support, hitting a low of $0.54 before slightly rising to $0.58.
- Mantle declined amid a broader market sell-off as panic exits in the derivatives caused intense selling pressure.