Mantle Price Action Analysis

At the time of writing, Mantle seemed to have a bearish swing structure on the weekly timeframe. Its drop below $1.03 revealed a bearish structure break on the daily chart.

Mantle (MNT) saw a 13% price drop on Friday, 21 February. The trading volume has been relatively strong in recent weeks, suggesting that a quick recovery may be unlikely for the altcoin at this time.

Multiple Bearish Signals in Price Action

Key swing levels on the weekly timeframe were at $1.51 and $0.56 for April and January 2024, respectively. MNT made a marginally lower low at $0.549 and a lower high at $1.39. This indicated a bearish weekly swing structure. The daily market structure has also been bearish as the recent drop below $1.03 confirmed a bearish market structure break.

Furthermore, the price fell to the 75% level of the previous range formation at $0.83, testing it as support. In the coming days, the $0.915-$0.956 zone is expected to act as a supply zone. Swing traders can look for a lower timeframe breakdown to enter short trades.

Technical indicators support these findings. The Chaikin Money Flow (CMF) was at -0.1, indicating significant capital outflows. The Directional Movement Index (DMI) showed a strong bearish trend on the daily charts, with both the Average Directional Index (ADX) and -DI above 20. This aligns with the previously mentioned bearish market structure.

The liquidation heatmap revealed that a cluster of liquidity around $1 was obliterated during the recent losses in the altcoin’s price. This cascade of long liquidations likely contributed to the decline to $0.83.

After such a significant move, the price is likely to consolidate around the $0.9 mark. This will allow time for liquidation levels above and below the price to build before the next impulse move. It remains unclear which level will be tested first, but swing traders can wait for a move towards $0.95-$1.03 before entering a position. A move beyond $1.1 would invalidate the bearish setup, making it a good point for setting stop-loss orders.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.