Mantle’s native token (MNT) has recently broken out of its short-term downtrend following a significant investment by World Liberty Financial (WLFI), a decentralized finance (DeFi) project. WLFI purchased approximately 3.54 million MNT tokens for nearly $3 million in USDC at an average price of $0.84 per token.

WLFI’s Investment Boosts MNT

This latest acquisition brings WLFI’s total MNT holdings to 5.99 million tokens, valued at roughly $5.06 million at the current market price. Additionally, WLFI’s overall cryptocurrency portfolio now exceeds $81.8 million, encompassing major tokens such as ETH, WBTC, TRX, LINK, AAVE, and ENA.

MNT serves as the utility token for the Mantle Network, a Layer 2 solution designed to scale Ethereum more efficiently. It is primarily used for paying gas fees and participating in governance decisions within the ecosystem.

Price Surge and Market Metrics

Following WLFI’s purchase, MNT experienced an 8.5% intraday rally, reaching $0.849. Its market capitalization climbed above $2.83 billion, while trading volume surged by 66% to approximately $123 million. This growth signals renewed investor interest in the token.

Interestingly, the rally marked a breakout from the downward trend that began on March 17, when MNT was trading around $0.838 before hitting a local bottom at $0.775 on March 21. The price recovery comes in the wake of the Mantle Mainnet hard fork on March 19.

Impact of the Mantle Mainnet Upgrade

The recent upgrade integrated EigenDA, a decentralized data availability layer designed to increase transaction throughput and improve network scalability. Additionally, this integration enhances Mantle’s compatibility with Ethereum’s upcoming Pectra upgrade.

Community Initiatives and Analyst Predictions

Another factor driving interest is the Mantle Surge campaign, a collaboration between Mantle and the crypto exchange Bybit. This campaign features a 1 million MNT prize pool incentivizing user engagement with projects across the Mantle ecosystem.

These developments have positively impacted the MNT community, with analysts forecasting further gains. One market analyst predicts MNT could surpass $0.90, provided it maintains support above the $0.80 psychological level.

“Buyers have already stepped in, and we’re up 26% from that Fibonacci retracement level,” noted an analyst, highlighting MNT’s rebound from an RSI low of 29, a metric historically associated with local bottoms.

Another trader emphasized the bullish sentiment surrounding MNT, attributing its recent recovery to a deep 78.6% Fibonacci retracement and a breakout from a descending channel pattern.

Technical Analysis: MNT Price Outlook

On the 4-hour USDT price chart, MNT has broken out of a descending parallel channel pattern observed since March 17. This breakout often signals sustained upward movement ahead.

MNT is currently trading above the 50-day exponential moving average (EMA), with the MACD lines trending upward, indicating growing bullish momentum. Additionally, the Aroon Up indicator is at 85.71%, while the Aroon Down is at 35.1%, further confirming strong buying pressure.

Analysts suggest that MNT’s next target is $0.90, a critical psychological resistance level. A successful breakout above this price could pave the way for testing $1.27, a resistance level the token has struggled to breach twice this year.

However, one potential concern is MNT’s relative strength index (RSI), which is currently in the overbought zone at 75. While this doesn’t guarantee an immediate reversal, a short-term pullback could occur before MNT resumes its upward trajectory.

At the time of writing, MNT is trading at $0.844, reflecting a growing interest in the token among investors.

Disclaimer: This article is for educational purposes only and does not constitute investment advice. Always conduct your own research before making financial decisions.

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