Ethereum News Today: MNT surges over 20% as volume jumps 300% amid breakout fears

MNT has surged over 20% in the last 24 hours, breaking above the $0.82–$0.85 resistance zone for the first time since February [1]. This level had previously acted as a strong ceiling, with multiple failed attempts to push through since mid-July. The breakout is accompanied by a nearly 300% increase in trading volume, signaling increased buyer interest [1].

Despite the positive price movement, technical indicators hint at the possibility of a fakeout. The Relative Strength Index (RSI) has shown bearish divergence, with price making new highs while the indicator forms lower highs [1]. This divergence suggests that momentum behind the rally may be weakening, raising concerns among traders about a potential short-term reversal.

However, strong fundamentals continue to support MNT’s long-term case. Mantle recently launched a $400 million tokenized crypto index fund in partnership with Securitize, signaling institutional-grade credibility and long-term capital commitment [1]. Network activity is also showing signs of improvement, with daily active addresses rising from under 40,000 in June to over 120,000 in July [1].

Another significant development is Mantle’s inclusion in the Strategic ETH Reserve with a treasury of 101,867 ETH, making it the largest ETH-backed treasury among Web3 entities [1]. This provides the project with substantial financial flexibility for ecosystem development and user incentives.

MNT has also been added to Coinbase’s listing roadmap, a move that could attract further retail and institutional attention [1]. These developments underscore the project’s growing influence and stability within the crypto market.

Looking ahead, the key will be whether MNT can consolidate above the $0.82–$0.85 level. A successful consolidation could turn the resistance into support and pave the way for a move toward the $1 psychological level. A short-term pullback is still possible, especially as traders take profits after the rapid price increase, but a retest of the 20 EMA could confirm whether bulls remain in control [1].

Overall, while technical indicators raise caution, the project’s fundamental developments suggest that this breakout, whether real or a false one, reflects genuine underlying strength and potential for future growth.

Source: [1] MNT price breakout faces fakeout fears, but fundamentals stay strong (https://crypto.news/mnt-price-breakout-faces-fakeout-fears-but-fundamentals-stay-strong/)