Mantle (MNT) Bulls Plan to Stage a Comeback – Can They Overcome These Challenges?
Over a span of just five days, Mantle (MNT) witnessed a rapid surge of 74%, moving from $0.541 to $0.94. This upward movement commenced on November 4th and peaked on November 9th, only to encounter a significant pullback.
During this period, several alternative cryptocurrencies experienced substantial gains. However, MNT retraced while Bitcoin (BTC) surged past the $75,000 mark, diverting attention towards the leading cryptocurrency and overshadowing altcoins like Mantle.
Is it Time for Mantle Bulls to Consider Buying?
The rally beyond $0.9 led to a surge in daily active addresses and network growth, hitting three-month highs. A similar level of activity was last observed in mid-August when Mantle dipped to lows around $0.6.
Despite a decline in network activity over the past week, indicating reduced participation and demand for MNT, the circulating supply remained low, implying that there wasn’t significant selling pressure.
Furthermore, the ongoing development activity remained robust, providing reassurance to long-term holders.
Following the recent retracement, Mantle’s 30-day MVRV ratio dropped to -1.4%, indicating that short-term holders were experiencing losses on average. Concurrently, the Network Value to Transactions (NVT) ratio declined as well.
However, the recent trend shows a shift in the NVT ratio, as transaction activity plummeted due to decreased network involvement, leading to a rise in the NVT ratio. This suggests that the asset might be approaching an overvalued territory compared to its on-chain transaction volume.
Mantle Struggles Below Mid-Range Resistance
Technical analysis indicates a favorable buying opportunity for Mantle, given its trade within the range of $0.58 to $0.91 since June, with the current value lingering just below the mid-point at $0.75.
The $0.668 level stands out as a robust support zone both technically and historically, providing bulls an edge as long as prices remain above this threshold.
If demand for the token continues to rise, it could potentially push prices beyond the range’s upper limits, targeting levels around $1.1 and $1.45.