MNT is facing significant liquidity pressure along with a strong decline, but the cash flow from spot investors of over $60 million could set the stage for a notable recovery in the near term.
Despite the deep price drop of MNT, cash flow from long-term investors continues to pour in, highlighting the difference between selling pressure in the derivatives market and buying pressure in the spot market.
MAIN CONTENT
The TVL value of Mantle (MNT) has sharply decreased, with continuous cash outflows increasing selling pressure.
Although the derivatives market leans bearish, spot investors have purchased over $60 million in MNT in one week.
The liquidity structure and trading data indicate a strong potential for a bottom and technical recovery if cash flow continues to pour in.
How much has MNT's price dropped recently?
MNT has recently recorded its deepest adjustment at 9%, after rising 61.76% just in the previous 4 weeks. Selling pressure appeared as market sentiment quickly reversed, causing short-term price declines.
MNT has gone through a strong growth phase lasting several weeks, but the recent decline serves as a reminder of the characteristic volatility of small-cap cryptocurrency assets.
AMBCrypto analysis, 21/08/2025, ambcrypto.com
The recent plunge occurred after a series of hot gains. This indicates that the market can realize profits quickly, and any volatility can lead to chain-like sell-offs, especially when speculative sentiment returns.
This strong downtrend is also characteristic of price cycles in the cryptocurrency market, often triggered by capital flow shifts and derivatives market signals.
How is Mantle (MNT) liquidity exiting?
The cash flow from MNT has continuously exited in recent sessions. In the last 24 hours, the total TVL value has decreased by another 2.22% to only $231.06 million (according to DeFiLlama), approaching the historical TVL bottom with only $3.69 million left.
The continued decline in TVL is a clear indicator of short-term sentiment, with investors becoming more hesitant about holding long-term positions.
DeFiLlama report, 21/08/2025, defillama.com
The pressure to exit capital reflects a shift in investment perspective from long-term to short-term. As TVL approaches old lows, the risk of correction increases due to the lack of price support from defensive cash flows.
At the same time, the derivatives market recorded $13 million worth of contracts being withdrawn, reducing Open Interest to only $119 million. This indicates that investors are no longer keen on derivatives positions, contributing to deeper liquidity drops.
What notable points in the derivatives market are affecting MNT's price?
The trading volume and low Taker Buy-Sell Ratio (only 0.9324) imply that the selling side is controlling the derivatives market, creating room for unexpected declines.
This development signals increasing selling pressure from the derivatives market, especially when investors expect prices to fall deeper.
AMBCrypto comments, 21/08/2025, ambcrypto.com
The decrease in Taker Buy-Sell Ratio reflects weakened confidence in upward price movement. When this index data falls below 1, the selling side is clearly dominating the perpetual contract market.
In this context, most traders in the derivatives market expect prices to continue to decline – a sign that the sell-off momentum may not yet be over in the short term.
Can spot investors save MNT?
Despite strong selling pressure in derivatives, data from CoinGlass shows that spot investors have poured over $60 million into purchasing MNT over the past week, including $7.57 million in the last 24 hours.
Despite the short-term selling pressure being overwhelming, the large spot buying force reflects the long-term confidence of a segment of holders, willing to hoard MNT in personal wallets instead of selling to realize profits.
CoinGlass data, 21/08/2025, coinglass.com
This concentrated buying power is largely outside the on-chain system, reflecting a hoarding behavior rather than speculative trading. In contrast to the continuous selling actions of on-chain traders, the accumulated spot volume indicates expectations of recovery in the near future.
However, significant spot buying currently has not clearly affected the price. If cash flow continues to rise to tens of millions of dollars, this trend could be strong enough to balance the selling pressure from derivatives and on-chain, creating conditions for a new recovery wave.
What actions are on-chain investors taking with MNT?
The group of on-chain investors continues to sell and convert MNT into other assets, prioritizing a short-term play before the market's unstable fluctuations.
This behavior contributes to increased overall selling pressure, making it difficult for the price of MNT to create a recovery wave in the short term despite accumulated buying force in the spot market.
The contrast between the two investor groups creates a temporary balance, with prices still primarily influenced by buying and selling cash flows according to market waves.
What are the key factors for MNT's recovery outlook?
Despite the bearish market prevailing, the liquidity structure shown on the heatmap indicates MNT's potential to create a technical bottom to bounce back if sufficient buying resources emerge.
Large liquidity clusters above and below the current price will be focal points attracting cash flow, creating momentum for the recovery scenario if accumulation force increases sharply.
CoinGlass heatmap analysis, 21/08/2025
Based on the liquidity chart, MNT may decline further to clear weak positions, then form a sustainable demand zone. A recovery scenario will be triggered when buying pressure continues to outweigh the remaining selling pressure.
If this trend continues, MNT could rise back to $1.5 – where the largest liquidity cluster currently exists, serving as a magnet pulling prices back to equilibrium.
Is MNT repeating volatility patterns like other major altcoins?
The deep decline after a hot growth cycle and accumulation at low prices has occurred in many mid to large-cap altcoins. The success of this scenario often depends on the strength of spot cash flow and the endurance of long-term holders.
With a sharp decrease in TVL, liquidity, and derivatives positions, the current model of MNT is quite similar to what happened with some major altcoins during strong corrections from 2021-2023 (according to CoinMarketCap Historical Data analysis, 2023).
The key point will be the strength of the spot buying force; only when cash flow continues to accumulate for a sufficient time will the ability to create a bottom and return to rapid growth truly be sustainable.
Key metrics of MNT in the latest report
Source Value Index The deepest discount drop of 9% Week 21/08/2025 AMBCrypto Previous performance increase of 61.76% / 4 weeks Until 21/08/2025 AMBCrypto Current TVL $231.06 million 21/08/2025 DeFiLlama Spot buying volume in the week Over $60 million 14 – 21/08/2025 CoinGlass Derivatives Open Interest $119 million 21/08/2025 AMBCrypto Taker Buy-Sell Ratio 0.9324 21/08/2025 AMBCrypto
Frequently Asked Questions
What is MNT?
MNT is the native token of the Mantle ecosystem, a Layer 2 network aimed at optimizing speed and cost on the Ethereum Blockchain.
Why is MNT's TVL continuously decreasing?
The main reason is that investor cash flow has been withdrawn to realize short-term profits, as market sentiment shifts towards the short term.
What does the spot buying force mean for MNT's outlook?
The large spot buying force indicates a strong expectation of price recovery if investors continue to accumulate and are not overly influenced by selling pressure in the derivatives market.
How does the decrease in derivatives Open Interest affect?
The decrease in Open Interest reflects speculative cash flow withdrawal, making the market more susceptible to deeper declines if new buying forces do not offset it.
When can MNT recover?
MNT can create a technical bottom and recover if the large liquidity cluster at $1.5 is activated by a continuous increase in spot buying cash flow.
What should holders do when MNT experiences significant volatility?
Long-term holders need to consider risk management and monitor immediate cash flow as well as recovery signals from the derivatives market to make reasonable decisions.
Do TVL and MNT price always go together?
TVL and price are often related but not entirely in sync, significant TVL fluctuations can lead to price corrections, but prices are still influenced by many other factors such as investor sentiment and overall market trends.
Source: https://tintucbitcoin.com/mantle-giam-manh-60-trieu-usd-ho-tro/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!