Mantle Cryptocurrency Falls 11%, Losing Support Level at $0.6

The cryptocurrency Mantle (MNT) faced strong bearish pressure, dropping by 11.4% and losing key support at the $0.6 level. At the time of publication, Mantle was trading around $0.58, with a trading low of $0.54, nearly erasing all recent gains of the asset. The standard market trading volume for the day significantly increased by 89%, reaching $48 million, indicating high seller activity. According to CoinGlass, open interest (OI) fell by 14% to $50 million, while the volume of derivatives surged by 210% to $39 million.

The decline in OI signals a decrease in market activity using leverage. The combination of declining OI and rising volume confirms that a sell-off occurred in the market. For instance, on the Bybit platform, the volume of Mantle perpetual contract sales reached $4.2 million, already exceeding the purchase volume of $3.2 million. On futures markets, outflows amounted to $14.7 million, while inflows were $10.7 million, leading to a sharp drop in net futures flow by 1225% to 4 million. This indicates a significant exit of funds from the market. Notably, a massive sell-off in derivatives markets often leads to short-term market shocks and price declines.

Nevertheless, despite the panic in the derivatives sector, demand in the spot market remained unchanged. Over the past 24 hours, the net flow in the spot market fell to -$928 thousand, with more than $10 million withdrawn from exchanges. Despite this, spot market buyers are holding positions, which helps Mantle by providing support for price volatility. The current moment in Mantle indicates increased downward pressure: the relative strength index (RSI) fell to 41, signaling deep bearish sentiment. It has declined for six consecutive days following a bearish crossover. Such a structure often precedes further weakening and losses. If the selling pressure continues, Mantle may fall back to the $0.54 level and possibly return to support at $0.50. However, if demand in the spot market remains stable, it could help the asset reach the $0.6 level and close above $0.63.