Mantle (MNT), the token associated with the Mantle network, has recently experienced a sharp correction after an impressive rally earlier this month. The question on many traders’ minds is whether MNT can overcome its current hurdles and continue its upward trajectory. Despite recent setbacks, there is some hope that the token could still find its way to higher levels, but several challenges remain.

A Rapid Rally Followed by a Pullback

Mantle’s price action has been anything but predictable. Beginning on November 4th, the token surged by 74%, moving from $0.541 to a high of $0.94 within just five days. This rapid move marked a local peak on November 9th, but it was followed by a significant pullback. While the price jump was impressive, Mantle struggled to maintain the momentum, as the market turned its focus toward Bitcoin (BTC), which had its own breakout past the $75K level.

During this period, Bitcoin’s rally overshadowed the performance of many altcoins, including Mantle, leaving it struggling to gain back its lost ground. The lack of conviction in Mantle’s price action raises questions about whether the token can outperform other large-cap altcoins moving forward.

Network Activity Decline: A Cause for Concern?

In the past week, network activity on the Mantle blockchain has seen a noticeable decline. This drop in participation and demand is reflected in the reduced daily active addresses, signaling lower market interest. Furthermore, the decline in dormant circulation suggests that there’s no immediate selling pressure from long-term holders, but it also indicates a lack of new interest entering the market.

Despite the reduced activity, Mantle’s development activity has remained relatively high, which is a positive sign for long-term holders. Strong development is often a key factor in driving long-term adoption and can help bolster investor confidence even in the face of short-term price setbacks.

A Buying Opportunity Amid Retracement?

For traders who are considering Mantle as a potential buying opportunity, the technical chart offers a glimmer of hope. The token has been trading within a range between $0.58 and $0.91 since June, and as of the latest data, it was hovering just below the mid-range level of $0.75. This could offer a potential buying opportunity for those looking to enter at a relatively lower price point.

Moreover, the $0.668 level, which sits at the lower end of the range, has historically acted as a strong support zone. As long as Mantle holds above this level, bulls could have the advantage, and the token could attempt to climb higher.

Key On-Chain Metrics: Mixed Signals

Several key on-chain metrics are providing mixed signals about Mantle’s future price direction. The MVRV ratio (Market Value to Realized Value) for MNT recently dipped into negative territory, reaching -1.4%. This suggests that short-term holders are at a loss, which is often a sign of market correction. The Network Value to Transactions (NVT) ratio, which compares the network’s value to the on-chain transaction volume, has also been fluctuating. The recent decline in transaction activity has caused the NVT ratio to rise, indicating that Mantle could be becoming overvalued relative to its on-chain volume.

These mixed signals mean that while Mantle could still see upward price movement, caution is advised. If the NVT ratio continues to trend higher, it could suggest that the token’s price is outpacing its actual network usage, which might trigger a price correction.

Potential for a Recovery: Overcoming Resistance

Looking ahead, Mantle’s price will need to overcome several key resistance levels in order to mount a successful recovery. If the token can break through the mid-range resistance level at $0.75, it could target the next resistance zone around $0.91, which has proven difficult to surpass in recent weeks.

A rise above $0.91 could set the stage for a more substantial rally, with potential targets at $1.1 and $1.45. These levels could offer attractive profit-taking opportunities for investors, but the path to these targets is fraught with challenges. Mantle must first prove that it can sustain momentum and convince the market that the recent pullback was merely a temporary setback.

Conclusion: Can MNT Bulls Make a Comeback?

While Mantle’s recent performance has been mixed, there are still reasons for optimism. With a strong development outlook and the possibility of a buying opportunity at lower levels, MNT could recover if it overcomes its current technical hurdles. Traders should keep an eye on key price levels, such as the $0.75 mid-range resistance and the $0.668 support, to gauge whether Mantle can mount a successful recovery.

As Bitcoin continues to dominate the cryptocurrency market, Mantle’s fate in the short term may depend on whether it can attract fresh demand and regain its momentum. For now, bulls will be watching closely to see if Mantle can break through its resistance and make a sustained push toward higher price levels.