MNT Plunges 13%: Is Now the Time to Go Short?

Mantle [MNT] price prediction – Should you use price bounce past $1 to go short?

Mantle [MNT] experienced a 13% price drop on Friday, February 21, with relatively strong trading volume in recent weeks. This suggests that a quick recovery may be unlikely for the altcoin at present. The price action displayed multiple bearish signals, with a bearish swing structure on the weekly timeframe and a bearish market structure break on the daily chart.

The key swing levels on the weekly timeframe were at $1.51 and $0.56, respectively, for April and January 2024. Since then, MNT has made a (marginally) lower low at $0.549 and a lower high at $1.39. This indicates that the weekly swing structure is bearish. The recent drop below $1.03 confirmed a bearish market structure break.

The price fell to the 75% level of the former range formation at $0.83, testing it as support. Over the coming days, the $0.915-$0.956 zone is expected to serve as a supply zone. Swing traders can look for a lower timeframe breakdown to enter short trades.

The technical indicators agreed with this finding. The CMF was at -0.1 and highlighted significant capital outflows. The DMI highlighted a strong bearish trend on the daily charts, with both the ADX and -DI above 20. This agreed with the bearish market structure mentioned previously.

The liquidation heatmap revealed that a cluster of liquidity around $1 was obliterated during the altcoin’s recent losses. This cascade of long liquidations likely contributed to the recent price move to $0.83. After such a strong move, the price would likely consolidate around the $0.9-mark, giving time for liquidation levels above and below the price to build.

It is unclear which one would be tested first, but swing traders can wait for a move towards $0.95-$1.03 before entering. A move beyond $1.1 would invalidate the bearish setup, hence, it can be used to set stop-loss orders.