Home Altcoins News Mantle (MNT) Gains 14%: Top Performer of the Day

Mantle (MNT) Gains 14%: Top Performer of the Day

Mantle price

Mantle (MNT), the native token of the Mantle Network, a Layer-2 scaling solution for Ethereum, has emerged as one of the top performers in the cryptocurrency market. The token surged by an impressive 14% in the last 24 hours, making it the leading gainer among the top 100 cryptocurrencies by market capitalization. This price increase has drawn attention to the token, and experts are beginning to speculate about the factors that could drive MNT’s continued rally in the near future.

Key Factors Driving MNT’s Price Surge

The surge in MNT’s price is linked to several positive developments, the most significant being a notable rise in user activity and demand for the token. According to data from Santiment, MNT’s Price Daily Active Addresses (DAA) Divergence currently stands at 54.67%. This metric is an indicator of increasing user engagement and network activity. When the DAA Divergence is positive, it signals that more users are interacting with the token, which often results in rising demand and subsequently drives the token’s price upward. This divergence suggests that MNT is experiencing a growing adoption rate, which is likely fueling the current bullish trend.

In addition to the DAA Divergence, Mantle’s Network Realized Profit/Loss (NPL) metric also plays a critical role in shaping the price action. At -131,000, the NPL indicates a decrease in the amount of sell-offs at a loss among market participants. NPL measures the total profit or loss realized by all tokens that changed hands within a specific time period. A negative NPL means that, on average, assets are being sold at a loss. This reduces the downward pressure on the token’s price as fewer investors are selling at a loss. This also helps to support the current price rally since less selling pressure allows the price to continue moving upward.

Technical Indicators Point Toward Continued Growth

From a technical analysis perspective, MNT has shown clear signs of bullish movement. The price surge has helped push MNT above its 20-day exponential moving average (EMA), a key short-term price trend indicator. When the price crosses above the 20-day EMA, it is generally seen as a bullish signal, suggesting that the price may continue to rise as the market sentiment improves. In the case of MNT, breaking above this moving average confirms that the token is in a bullish trend, further supporting the idea that it may continue to perform well in the coming days.

If the bullish momentum continues, MNT could be on track to break through its next resistance level at $1.29. This would bring it closer to its all-time high of $1.51, which was reached in April. Given the current market sentiment and technical indicators, there is a possibility that MNT may approach this all-time high if the demand and user engagement remain strong.

Possible Risks to the Bullish Outlook

However, while the short-term outlook for MNT appears to be bullish, there are potential risks that could halt the rally. If selling pressure begins to build, particularly if investors decide to lock in profits, MNT’s price could experience a retracement. In such a scenario, the price could drop to the $1.11 support level, invalidating the bullish outlook. Nevertheless, as of now, the market is still showing positive signs of growth, with fewer sell-offs at a loss and a rising number of active users.

Conclusion: Is MNT Set for Continued Growth?

Mantle’s MNT token is currently experiencing a strong bullish momentum, driven by increased user activity, reduced selling pressure, and positive technical indicators. If the current trend continues, MNT could break through key resistance levels and challenge its all-time high. As the demand for Mantle’s Layer-2 scaling solutions grows, investors are closely watching MNT for further price movements. While risks remain, the outlook for MNT appears promising in the short to medium term, with the potential for continued growth in the coming weeks and months.

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MikeT

Mike T, an accomplished crypto journalist, has been captivating audiences with her in-depth analysis and insightful reporting on the ever-evolving blockchain and cryptocurrency landscape. With a keen eye for market trends and a talent for breaking down complex concepts, Mike's work has become essential reading for both crypto enthusiasts and newcomers alike. Appreciate the work? Send a tip to: 0x4C6D67705aF449f0C0102D4C7C693ad4A64926e9

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