MNT’s Explosive Rally Nears Euphoria: Could Mantle Face a Short-Term Reversal?
Mantle’s MNT is one of the most notable performers of the day, rising 12% as a result of the altcoin’s robust market demand. Before dipping marginally to $2.53 at the time of writing, the altcoin hit a fresh all-time high of $2.85 earlier today. Demand is still high, but technical and on-chain data indicate that the rise is approaching euphoric levels. This can be a sign that a temporary reversal is imminent.
MNT Price Surge Continues, But Overbought Signals Flash Red
On the daily chart, MNT is trading above its ascending parallel channel, demonstrating its upward price momentum. This channel is created when the price of the asset continuously moves between two parallel trendlines, one of which serves as resistance and the other as support. Trading above this channel frequently leads to more price increases and validates a clear bullish takeover.
Nevertheless, MNT has an obstacle. Readings from the Relative Strength Index (RSI) show that the altcoin is overbought. In the medium term, this implies that the rally might be getting close to unsustainable levels. This crucial momentum metric is currently at 72.36. According to MNT’s RSI, buyers may be approaching weariness, and the market may be overheating. Over the course of the following trading sessions, they can cause the token’s value to decline.
MNT Futures Open Interest Hits Yearly High
CoinGlass data shows that MNT’s futures open interest has increased 20% in the last day to reach a year-to-date high of $490.45 million. This spike may portend short-term difficulties for MNT’s price as it indicates traders’ increased exposure to leverage. A rise in futures open interest, combined with an asset’s price rising, can be a sign of strong optimistic enthusiasm. It also carries a higher danger, though. Market sentiment could be tempered, and recent MNT gains could be at risk if a slight price decline leads to large liquidations of some of these open positions.
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