Mantle’s price has been under heavy pressure this month, sliding more than 22% over the past two weeks as the broader crypto market went through another wave of risk aversion. Despite the steep decline, several emerging technical and on-chain signals suggest the downtrend could be approaching a potential turning point.
From its January high of $1.13, Mantle has dropped to around $0.88, extending its drawdown to nearly 69% from the all-time high of $2.86 recorded last October. The pullback comes amid a wider market correction that intensified as Bitcoin struggled to regain the six-figure level it lost during November’s selloff.
Macroeconomic uncertainty has added to the pressure. Renewed trade tensions between the U.S. and the European Union, coupled with President Trump’s controversial Greenland ultimatum, have pushed investors into a risk-off stance. At the same time, delays surrounding a major U.S. crypto market structure bill have further dampened sentiment across digital assets.
Speculative interest in Mantle has also cooled sharply. Data from CoinGlass shows futures open interest has collapsed to just $59 million, down from nearly $490 million in October. Even a recent listing on Robinhood failed to spark a meaningful bounce, highlighting how fragile investor confidence remains in the current environment.
However, beneath the surface, on-chain data is beginning to tell a different story. According to Nansen, Mantle has seen notable exchange outflows, with MNT reserves falling from a monthly high of $1.93 billion to $1.89 billion. Historically, declining exchange balances often signal accumulation, as investors move tokens into private wallets with longer-term intentions rather than preparing to sell.
Mantle price analysis
On the daily chart, Mantle is trading within a descending parallel channel. While this structure reflects short-term bearish momentum, it is often viewed by technical analysts as a bullish continuation setup when price approaches the lower boundary.
Adding to this, Mantle has formed a double bottom pattern, a classic bullish reversal signal where price creates two similar lows separated by a temporary rebound. If buyers manage to defend the $0.85 support zone, the setup could pave the way for a relief rally.
A sustained move higher would likely see bulls first target the psychological $1.00 level. A clean breakout above that area could confirm a trend reversal and open the door for a move toward $1.20, based on the projected height of the channel.
That said, risks remain. If Mantle fails to hold the $0.85 floor, the price could slide toward the next major support near the August low around $0.67.
Momentum indicators are still flashing caution. The MACD remains below the zero line, suggesting bearish momentum has not fully faded. Meanwhile, the Aroon indicator shows the downtrend firmly intact, with Aroon Down significantly elevated compared to Aroon Up a sign that sellers continue to dominate for now.
In short, while Mantle’s chart is beginning to show early signs of a potential reversal, confirmation is still needed. A strong defense of support and a breakout above resistance will be key to determining whether January’s losses mark a bottom or just another pause in the downtrend.
