MNT has broken above key resistance for the first time in months, but technicals suggest it could be a fakeout. Still, strong fundamentals support the case for longer-term growth, making subsequent pullbacks a potential buy-the-dip opportunity.
Summary
- MNT price surged over 20%, breaking above the $0.82–$0.85 resistance zone for the first time since February.
- Bearish RSI divergence suggests the rally may be losing momentum and this could be a fakeout.
- Fundamentally, Mantle’s large ETH-backed treasury and recent institutional partnerships may support continued growth despite near-term volatility.
Mantle (MNT) price is in the middle of a bullish breakout, surging over 20% in the past 24 hours, accompanied by a near 300% spike in trading volume. This surge is particularly noteworthy because it has pushed MNT price above the key resistance zone at $0.82–$0.85 — a level that had been capping price action since late February.
The breakout follows a well-defined accumulation phase that began after the price bottomed at $0.55 in early July. Since then, buyers have attempted but failed to breach the $0.82–$0.85 resistance on three tries, highlighting the strength of this barrier.
Now, with that resistance finally broken and MNT price trading above both the 20 EMA and 50 SMA, the question becomes whether it will sustain this breakout by consolidating above the former resistance zone — potentially flipping it into support — or whether a short-term pullback will occur as traders take profit after the sharp move.
Given the steep rise, some degree of profit-taking and volatility is likely, but if MNT price holds above the $0.82–$0.85 zone, it would suggest continued accumulation and strength. Even if it falls below this zone but holds above the 20 EMA, it would still indicate that that bulls are stepping in on dips. In that case, the breakout may not be invalidated, but rather entering a healthy correction phase before attempting another move higher.
Could this be a fakeout?
However, there are some signs that it might be a fakeout. The main concern is the bearish divergence that emerged on the RSI. As MNT price made a new local high above the previous peaks, the RSI failed to follow suit, printing a lower high instead.
What happens next will likely depend on how MNT behaves in the coming sessions. If the price consolidates above the $0.82–$0.85 zone, it would confirm that the breakout is being absorbed by buyers rather than rejected. In that scenario, the RSI could reset slightly without major price damage, paving the way for a move towards the psychological $1 mark.
Mantle’s recent fundamental developments
Even though there are some technical warning signs, strong fundamental factors make this cycle promising for MNT’s price in the long term.
The late April launch of a $400 million tokenized crypto index fund with Securitize was a big step, bringing serious long-term investment to the project. Plus, there’s a clear revival in the network activity, with daily active addresses rising from below 40K in June to over 120K in July.
Additionally, Mantle recently joined the Strategic ETH Reserve with 101,867 ETH in treasury, making it the largest ETH-backed treasury amongst Web3 entities. This is potentially bullish for MNT token’s price because it gives Mantle the flexibility to fund ecosystem development and incentivize adoption.
Finally, MNT’s recent addition to Coinbase’s listing roadmap is another bullish catalyst that could bring more investors moving forward.
