Mantle (MNT) breaks out of the long term pattern: Initial signal for a new bullish cycle?

After three consecutive sessions of increases, Mantle (MNT) slightly adjusted by over 1% on Tuesday. Nonetheless, the optimistic sentiment is still clearly present in the derivatives market, as evidenced by the continued increase in open contracts. From a technical perspective, the upward trend of MNT is facing an important challenge as it approaches the 200-day exponential moving average (EMA) – a dynamic resistance level that could determine price movement in the short term.

The open contracts of MNT rising sharply indicate an increasing optimistic sentiment.

The open contract (OI) of a cryptocurrency represents the total value of open positions in the derivatives market. Typically, an increase in this index reflects the inflow of funds into the market, meaning that trading activity is becoming increasingly vibrant.

Open interest of MNT | Source: CoinglassData from CoinGlass shows that the open interest of MNT has increased by 18% in the past week, reaching 21.63 million USD – a positive signal for price movement.

The upward momentum of Mantle is facing an important dynamic resistance level

Currently, MNT is trading in a consolidation zone between two important moving averages: the 100-day EMA at $0.6869 and the 200-day EMA at $0.7485. Notably, the price remains above the 23.6% Fibonacci retracement level at $0.6903 – identified from the peak on January 6 at $1.4198 to the bottom on July 1 at $0.5524.

On the daily chart, MNT has just broken out of the falling wedge pattern ( – a bullish signal that often indicates a price reversal. Currently, this coin is approaching the 200-day EMA line, which acts as a dynamic resistance. If MNT can close steadily above this threshold, the upward momentum is likely to be reinforced, opening up the opportunity to reach the next target area at the 50% Fibonacci level – corresponding to $0.8856.

![])https://img-cdn.gateio.im/webp-social/moments-05194ada53f982ff8a17b82d4472c911.webp(Daily chart of MNT/USDT | Source: TradingviewThe RSI indicator on the daily timeframe is currently at 69, approaching the overbought threshold, indicating strong buying pressure is increasing. At the same time, the MACD continues to reinforce the bullish signal: the green histogram bars are increasingly expanding above the 0 line, reflecting clear upward momentum; meanwhile, both the MACD line and the signal line have risen into the positive area – a sign that a sustainable uptrend is forming.

However, if MNT cannot break through the 200-day EMA and is rejected here, profit-taking pressure may arise, pushing the price back to test the important support area at the Fibonacci 23.6% level of $0.6903.

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