• MNT sees a price increase, but a drop in trading volume suggests weak support in the market.
• A 4.33% weekly decline raises concerns over the sustainability of MNT’s recent price rally.
• Testing the key demand zone, MNT could rise if bulls defend support and push prices higher.

Mantle (MNT) is currently trading at $1.69, a gain of 6.44% within the last 24 hours. Despite this price movement, the trading volume has reduced by 23.21%, and it is currently standing at $221.55 million. This decline in trading activity indicates that the price increase has not been backed by the additional participation in the market.

Source: CoinMarketCap

The MNT has experienced a decrease in its price by 4.33% over the week. This is contrary to the recent 24-hour rally, which indicates that, although there are prospects of making short-term gains, the general momentum is negative. Investors may need to assess whether this rally can be sustained or if prices will revert to a downward trend in the coming week.

MNT Faces Key Test in Demand Zone

Crypto analyst CryptoPulse highlighted that MNT is now trading within its past demand zone, which has historically been a strong support level. This demand zone plays a pivotal role within MNT because it could reaccumulate and present a basis for possible price movement. In case the bulls defended this zone, MNT may retest higher price levels within the short run, such as $1.9, $2.2, and even $2.5.

Source: X

But in case MNT falls below $1.4, the existing bullish structure would be nullified. This could create the potential for a larger downside and possibly target lower support levels. Investors will be eagerly monitoring this level in order to determine the subsequent direction of the market.

RSI and MACD Show Weakening Momentum

The Relative Strength Index (RSI) is at 47.19, which is a little lower than the neutral level of 48.00. This implies that MNT is neither overbought nor oversold, reflecting market indecisiveness. The price is yet to show a definite direction, as shown by the RSI, which is indicating consolidation. 

Also Read: Dogecoin Slips to $0.19 as Bull Momentum Fizzles

The Moving Average Convergence Divergence (MACD) indicator provides mixed signals. The MACD line overtakes the signal line, which usually indicates price strength towards the bullish. But the histogram is recording smaller green bars, which means that the upward movement is weakening. The MACD of 0.0123 supports the opinion that the positive trend may not be strong enough to persist in the near term.

Source: TradingView

Open Interest Rises as MNT Trading Volume Drops

According to CoinGlass data, the trading volume decreased by 34% to $186.93 million, and the open interest has grown by 7.25% to $188.72 million. This indicates that the trading volume has been low, although investor interest in MNT is high. The OI-Weighted Funding Rate is 0.0065%, which depicts low interest and low probability of overleverage in the market.

Source: CoinGlass

If cryptocurrency goes below $1.4, the existing bullish expectations will be negated. This would probably cause a further decline, probing under the supports. Traders should be attentive to important levels as the market anticipates possible price changes.

Also Read: Ethereum Maintains $3800 Support Level Showing Signs of Upward Recovery