Over a span of just five days, Mantle [MNT] observed a swift 74% surge, moving from $0.541 to $0.94. This surge commenced on the 4th of November and peaked on the 9th of November, following which it encountered a significant pullback.
During this timeframe, many alternative cryptocurrencies were witnessing notable gains. The retracement for MNT coincided with the moment Bitcoin [BTC] surpassed the $75k threshold. The subsequent surge in Bitcoin’s price diverted attention towards the leading cryptocurrency, leaving altcoins like Mantle somewhat in the background.
Is it a Favorable Time for Mantle Bulls to Buy?
The rally above $0.9 led to a surge in daily active addresses and network expansion, reaching its highest point in three months. The last instance of such heightened activity was noted in mid-August, during Mantle’s decline to the $0.6 range.
However, over the past week, network activity has been dwindling, signaling reduced engagement and demand for MNT. Yet, the inactive circulation indicates a lack of immediate high selling pressures.
Moreover, development activities have maintained a fairly active level, which is likely to enhance the confidence of long-term holders.
The recent retreat pushed the MNT’s 30-day MVRV ratio to -1.4%, implying that short-term holders were experiencing an average loss. This price fluctuation also led to a decrease in the Network Value to Transactions (NVT) ratio.
But in the last three days, the NVT trend began to shift as transaction activities continued to decline due to lower network engagement. As a result, the NVT ratio started climbing, indicating a potential overvaluation of the asset compared to the on-chain volume being transferred.
Mantle’s Struggle to Break Through the Mid-range Resistance
Technical analysis pointed towards a promising buying opportunity for Mantle. Having traded between $0.58 and $0.91 since June, the current price sits just under the mid-range level at $0.75.
The $0.668 level acts as a robust support zone, both technically and historically. Therefore, as long as prices remain above this level, the bulls are likely to maintain control.
A surge in token demand could facilitate a breakthrough above the range highs, potentially propelling prices towards $1.1 and $1.45.