Key Points
Mantle’s surge to $1.26 attracted significant whale activity, marked by 937,000 buy orders. Futures trading saw a 26% increase in Open Interest, indicating a bullish trend. Will this lead to increased price swings or a sudden drop?
The price of Mantle [MNT] experienced a notable rise of 12.31%, reaching a seven-month peak of $1.26 before settling slightly to $1.21 at the time of this report.
During the same period, the cryptocurrency’s market capitalization exceeded $4 billion for the first time in seven months, signaling a consistent influx of capital.
Whales Return to Mantle Market
After a temporary absence from the spot market approximately two weeks ago, large investors, often referred to as “whales,” have returned to trading Mantle. Data from CryptoQuant’s Spot Average Order Size indicates substantial whale orders placed between August 15th and 16th.
Whale orders in the spot market are generally interpreted as a sign of increased participation from large players on both the buying and selling sides.
Spot Buy versus Sell Volume data indicates that these whales were primarily accumulating Mantle. According to Coinalyze, Mantle registered a positive Buy/Sell Delta for two consecutive days, further confirming this trend.
Source: Coinalyze
On August 15th and 16th, Mantle experienced a total Buy Volume of 937,000 compared to a Sell Volume of 455,000. This resulted in a positive Delta of 480,000, indicating significant accumulation activity.
Furthermore, exchange flow data aligns with this trend.
Data from CoinGlass shows that Mantle has been experiencing negative Spot Netflow for a sustained duration. Currently, this metric stands at -$5.73 million, signifying that outflows are exceeding inflows. Historically, increased outflows have often preceded upward price movement.
Source: CoinGlass
Bullish Sentiment Grows in Futures Market
Derivatives market data also points towards a significant shift in sentiment.
Source: Coinglass
According to CoinGlass, trading volume in the derivatives market increased by 14.19% to $103.6 million. Simultaneously, Open Interest (OI) rose by 26% to $80.6 million, as of the latest update.
A simultaneous increase in both volume and open interest suggests increased participation and capital flow into the futures market.
Mantle’s Long/Short Ratio is currently at 1.01, with long positions representing 51.7% of the market and short positions accounting for 48.3%.
Source: Coinglass
A higher demand for long positions in the futures market indicates that a majority of participants are expecting a price increase.
Buyer Momentum Reaches Extremes
Analysis suggests that renewed whale demand is fueling Mantle’s upward momentum.
The Moving Average Convergence Divergence (MACD) for Mantle has surged to 0.11, signaling strong buying pressure.
Concurrently, the Stochastic RSI has risen to 89, entering the overbought territory and further confirming the dominance of buyers.
Source: TradingView
While such strong momentum typically indicates a firm upward trend, it also often foreshadows potential volatility.
If buyer momentum persists, Mantle has the potential to reclaim $1.20 and target $1.40 as a resistance level. However, a decline in whale demand or renewed selling pressure could push MNT back down towards $1.05.