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MNT, the main cryptocurrency of Mantle Network, the Layer-2 technology for scaling the Ethereum network, has increased in price by 13% in the past 24 hours. This made MNT the biggest winner in the market during that period, outpacing the top 100 cryptocurrencies by market capitalization.
Strong demand and rising investor confidence suggest the price rally may continue in the short term. Here’s how it happens.
Demand for MNT increased sharply
According to Santiment, MNT’s daily DAA (Divergence of Active Addresses) index is showing an increase in demand for this altcoin. Currently, this index is 54.67%.
This is a strong buy signal, as this difference shows that user activity on MANTLE is increasing. This could further boost demand for MNT and consolidate the rally.
Additionally, the MNT network’s Real Profit/Loss (NPL) index is currently below zero at -131K, which indicates a decline in profit-taking activity among market participants.
The NPL Index measures the total realized profit or loss of all Tokens or coins that changed hands on a given day, comparing their selling price to their buying price. A negative NPL like this shows that on average the asset was sold at a loss.
This could prevent a short-term sell-off of MNT as it reflects a loss to those selling below their purchase price. Therefore, with fewer tokens being sold at a loss, bearish pressure in the market decreases, reinforcing the current bull run.
MNT price prediction: Can the bullish momentum continue?
Analysis of the one-day MNT/USD chart shows that the double-digit rally pushed MNT price above the 20-day exponential moving average (EMA).
The 20-day EMA measures the average price of an asset over the last 20 trading days, evaluating recent prices to determine short-term trends.
When the price of an asset rises above a moving average, it is considered a bullish signal, indicating that the price is trending upward and may continue to rise as market sentiment improves.
If MNT’s bullish momentum continues, its price could break above resistance at $1.29 and move towards its all-time high of $1.51, last reached in April.
Conversely, if selling pressure increases, this Bullish Forecast will be invalidated. In that scenario, the price of MNT could drop to $1.11.
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