Mantle [MNT] Price Prediction: Is It Time to Go Short After Bounce Past $1

Mantle (MNT) has been facing significant downward pressure recently, and traders are now questioning whether it is time to enter short positions after the price briefly bounced back past the psychological $1 mark. At the time of writing, MNT has shown multiple bearish signals, indicating that further downside might be ahead, especially after breaking crucial support levels.

Bearish Market Structure on Mantle’s Price Charts

On the weekly timeframe, Mantle’s price structure looks distinctly bearish. The coin’s recent drop below the $1.03 mark confirmed a bearish break on the daily chart, signaling a potential continuation of the downtrend. The key swing levels from earlier in 2024 were at $1.51 and $0.56, and the price has made lower lows and lower highs since, reinforcing the bearish sentiment.

The drop below $1.03 and its continued struggle to reclaim higher levels indicate a lack of bullish momentum. The most recent price action, with a 13% drop on February 21, 2025, has further fueled concerns that a recovery might be unlikely in the short term. Additionally, the market structure on the daily chart has broken down, providing more evidence that the bearish trend could persist in the coming weeks.

Key Levels to Watch: Support and Resistance

Mantle’s price has now fallen to the $0.83 support level, which is a crucial point in determining whether the downtrend will continue. The price has been testing this support level recently, and its ability to hold here will be key for the next move. If the price fails to maintain support at $0.83, a deeper drop toward the next significant support level at $0.56 could be on the horizon.

Looking at resistance, the $0.915–$0.956 zone has emerged as a potential supply zone. This zone will likely act as a strong barrier for any rallies in the near future. Traders can use lower timeframe breakdowns to enter short positions once the price starts showing signs of weakness in this area.

Indicators Suggest Bearish Momentum

The technical indicators further confirm the bearish outlook for Mantle. The Chaikin Money Flow (CMF) is currently at -0.1, signaling significant capital outflows, which reflects the ongoing sell-off in the market. Additionally, the Directional Movement Index (DMI) shows a strong bearish trend, with both the Average Directional Index (ADX) and the -DI line above 20, which further solidifies the notion of continued downward momentum.

These indicators, alongside the broken market structure, suggest that the bears are in control, and it’s unlikely that Mantle will see a significant rally anytime soon. The strong bearish trend and low investor confidence in the asset make it a risky buy at current levels.

Liquidation Heatmap and Short Entry Strategy

The recent price drop and liquidation cascade have obliterated the liquidity around $1, which likely contributed to the recent move down to $0.83. The liquidation heatmap indicates that both long and short positions were heavily affected by this move, but the absence of long liquidations around the $1 level suggests that more downside could follow.

After such a steep price drop, it is likely that Mantle will experience a period of consolidation around the $0.90 mark as liquidity levels above and below the price build up. Swing traders should keep an eye on this consolidation, as it could lead to further movements toward either $0.95 or $1.03 before the next significant impulse move.

For those looking to go short, it would be wise to wait for a price bounce toward the $0.95-$1.03 zone, where short entry opportunities may arise. However, if the price moves above $1.10, this would invalidate the bearish setup and should trigger stop-loss orders for those holding short positions.

Conclusion

Mantle (MNT) is currently in a bearish phase, with key support levels being tested and multiple technical indicators suggesting that further downside could be in the cards. Traders should be cautious of any price bounce past $1, as it may provide an opportunity to go short before the next potential drop. Watching the $0.83 support level and the $0.915–$0.956 resistance zone will be crucial for anyone looking to make informed trades in the near future. As always, it is important to use stop-loss orders to manage risk, especially if the price breaks above $1.10 and invalidates the bearish outlook.