Mantle [MNT] price prediction – Analyzing the potential for a short position after surpassing $1

Just recently, Mantle [MNT] witnessed a notable 13% decline in its price on February 21st. With consistent robust trading volume over the past few weeks, the chances of a rapid recovery for this altcoin seem quite slim.

Identification of Bearish Signals in Mantle’s Price Trends

Examining the weekly time frame, the significant swing levels were recorded at $1.51 and $0.56 (depicted in white) for the months of April and January 2024. Subsequently, MNT experienced a minor downturn, reaching a slightly lower low at $0.549 and a reduced high at $1.39 (illustrated in yellow).

These developments indicate a bearish trend in the weekly swing structure. Concurrently, the market outlook on a daily basis has also been pessimistic. The recent dip below $1.03 affirmed the breach of a bearish market formation.

Furthermore, the price touched the former range formation’s 75% level (depicted in purple) at $0.83, testing it as a support level. Anticipations suggest the $0.915-$0.956 range to act as a supply region in the upcoming period. For swing traders, watching out for a breakdown in shorter time frames could present an opportunity for short trades.

Technical indicators support these observations. The CMF indicates a value of -0.1, pointing towards significant capital outflows. Additionally, the DMI indicates a strong bearish trend in daily charts, with both the ADX and -DI surpassing the 20 mark. These findings align with the previously identified bearish market structure.

Further analysis through the liquidation heatmap reveals a concentration of liquidity around the $1 mark that was wiped out during the altcoin’s recent decline. This series of long liquidations likely influenced the price plummet to $0.83.

Following a substantial downward movement, it is probable for the price to consolidate around the $0.9 level. This consolidation phase could facilitate the establishment of liquidation levels above and below the price point. Subsequently, the price may navigate through both these levels prior to its next decisive move.

While the precise path remains uncertain, swing traders may opt to observe movements towards the $0.95-$1.03 range before making any decisions. Any surge beyond $1.1 would negate the prevailing bearish scenario, making it plausible to place stop-loss orders accordingly.

Disclaimer: The viewpoints expressed do not represent financial, investment, trading, or any other advisories and are solely reflective of the author’s perspective