Mantle Plunges 10% After Lazarus Group Hack

Mantle (MNT), a cryptocurrency, faces uncertainty following a significant hack on the Bybit exchange, which has led to a decline of over 10% in its value. The incident, attributed to the notorious North Korean Lazarus Group, has resulted in severe selling pressure on MNT, causing notable fluctuations in trading metrics. A recent COINOTAG report highlighted the heightened scrutiny on liquidity pools and security measures within ecosystems like Mantle in the wake of the hack.

The hack on Bybit, linked to the Lazarus Group, resulted in the loss of around $174 million, primarily in the form of cmETH, a liquidity provider for ETH in the MNT ecosystem. Following the incident, Mantle's Relative Strength Index (RSI) witnessed a dramatic drop, spiraling from 54.7 to a low of 22.9 in mere hours. This drastic decline indicated an extreme oversold condition and reflected an underlying bearish sentiment gripping the market. Market analysts noted that an RSI reading below 30 signals severe overselling, and Mantle's rapid descent emphasized the panic among traders. However, there has been a notable rebound in RSI to 39.9, hinting at a potential recovery, although it still remains in bearish territory. Market sentiment continues to be cautious, as the potential for further downside risk looms based on the RSI's performance.

Despite a slight recovery, traders are hesitant, as the threat of renewed selling pressure remains if buying momentum doesn't pick up significantly. The immediate outlook focuses on whether the RSI can maintain momentum toward a neutral zone between 30 and 50, which could indicate an easing of bearish pressures.

Mantle's Chaikin Money Flow (CMF) serves as another significant indicator highlighting the ongoing market pressures post-hack. Initially at negative values, the CMF declined further after the security breach, peaking at -0.35. This trend reflects continued selling activity as investors rushed to liquidate positions. Currently, MNT's CMF is moving slowly higher, now at -0.24. While this increase denotes a slight easing of selling pressure, the overall negative reading indicates an overarching sense of fear. Investors are encouraged to monitor CMF alongside price action for signs of potential recovery. Should CMF trend positively, it might signal a shift toward accumulation, pushing traders back into the market.