Mantle (MNT), the native token of Mantle Network, a Layer 2 (L2) solution for scaling Ethereum, has experienced a significant resurgence in demand over the past few weeks.
This renewed interest has resulted in a substantial price increase and heightened market attention, fueled by a series of strategic developments and increased accumulation by large holders.
In the past seven days, MNT’s price has surged by 16.41%, reaching $0.8922.
This growth is part of a broader upward trend, with the token climbing 10% in just 24 hours and showing a remarkable 40% increase from its recent low.
Despite this bullish trend, MNT’s price remains volatile, fluctuating between $0.8581 and $0.8937, reflecting the high market activity surrounding the token.
Reasons behind the price surge
The primary driver behind MNT’s recent price surge is the Mantle Network airdrop campaign, which launched on July 17.
This campaign, launched in partnership with IntentX to boost DeFi liquidity, incentivizes users by offering COOK tokens for staking Mantle Staked Ether (mETH) and engaging in daily activities.
The airdrop initiative has significantly boosted network activity. On-chain data indicates a 19% increase in daily active addresses and a 15% rise in new addresses trading MNT.
This increase in engagement is part of Mantle Network’s broader Metamorphosis initiative, designed to improve Ethereum’s scalability and security while encouraging user participation.
Participants in the airdrop earn Powder daily through mETH positions on partner protocols, which can then be converted into COOK tokens.
This mechanism has further stimulated demand for MNT, driving its price upwards.
Whale activity and market sentiment
Another crucial factor contributing to MNT’s price rise is the notable accumulation of the token by large holders, or whales.
Data from Dune Analytics reveals that netflow among large MNT holders has surged by 134% in the past week, signaling a strong bullish sentiment among major investors.
The increased whale activity has influenced market dynamics, as reflected in the Elder-Ray Index, which shows a positive value of 0.08.
This index suggests that buyer strength currently outweighs that of sellers, reinforcing the bullish trend for MNT.
Market outlook and potential risks
Despite the bullish momentum, the market remains cautious. The Relative Strength Index (RSI) indicates that MNT is currently overbought, suggesting a potential downturn could be imminent.
Analysts caution that if MNT’s price establishes a higher low above $0.72 during any pullback, it could signal the beginning of a new uptrend. This potential trend could propel the token towards $1 or higher, with the possibility of reaching new all-time highs later in 2024.
Source: TradingView
As Mantle continues to attract attention and investment, its future performance will likely depend on sustained interest from large holders and the successful execution of its strategic initiatives.
Investors will need to stay vigilant as market conditions evolve, balancing optimism with caution.
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