Mantle (MNT) recently experienced a significant uptrend earlier this month, with a rapid 74% move from $0.541 to $0.94 in just five days. However, this momentum was short-lived as it faced a deep pullback shortly after reaching local highs on November 9th. The retracement of Mantle occurred during a period when many altcoins were making substantial gains, while Bitcoin broke out past the $75k level, drawing attention away from altcoins like Mantle.
Despite the recent pullback, there is still hope that Mantle could outperform other popular large-cap altcoins in the future. The rally beyond $0.9 led to a surge in daily active addresses and network growth, reaching 3-month highs. This increased network activity coincided with a decrease in network participation and demand for MNT over the past week. However, the development activity remained relatively high, which could bolster long-term holders’ confidence in the project.
The recent retracement also affected Mantle’s 30-day MVRV ratio, with short-term holders experiencing a loss on average. Additionally, the Network Value to Transactions (NVT) ratio decreased as transaction activity plunged due to reduced network participation. This trend began to change over the past three days as the NVT ratio increased, suggesting that the asset may be becoming overvalued compared to the on-chain volume being transferred.
From a technical analysis perspective, Mantle presents a promising buying opportunity as it trades within a range from $0.58 to $0.91 since June, with the current price just below the mid-range level at $0.75. The $0.668 range level serves as a strong support zone both technically and historically, providing bulls with an advantage as long as prices remain above this level. Potential rising demand for the token could propel Mantle beyond the range highs and towards price targets of $1.1 and $1.45.
In conclusion, while Mantle may have faced a setback in its recent uptrend, there are still positive indicators that suggest the potential for future growth and outperformance compared to other large-cap altcoins. With high development activity, strong technical support levels, and the possibility of rising demand, Mantle could be well-positioned for a resurgence in the near future. Traders and investors should keep a close eye on key levels and indicators to gauge the potential for Mantle to continue its upward trajectory.
