Mantle [MNT] has dropped more than 10% in the last 24 hours after being rejected at a critical 20-day EMA resistance. The deep pullback has strengthened bearish pressure, taking the token further into a short-term downtrend.
But there's hope — the Stochastic RSI is rebounding from oversold levels, signaling a potential reversal if bulls hold the $1.74 support level.
???? Bears in charge, but RSI gives hope
The EMA rejection has initiated strong selling momentum, but the oversold RSI indicates that a relief rally is possible. If the buyers can defend the $1.74 support, MNT can bounce back towards the $2 level. A breakdown, however, could reveal lower support levels and prolong the bearish trend.
???? Mixed on-chain signals
On-chain metrics show increasing short positions in spot and derivative markets, which indicate caution. However, increasing trading activity is a sign of increasing volatility — a configuration that usually precedes stiff corrections when liquidity accumulates near oversold areas.
???? Long-term holders remain optimistic
Though near-term weak, long-term investors keep buying MNT, hinting at confidence in the possibility of a bullish reversal once sentiment stabilizes. The consistent increase in holder number indicates increasing confidence that Mantle's fundamentals are still intact.
