The mantle native token, MNT, is today’s top gain. Its value has risen 4% in the last 24 hours, extending the strong weekly rally where prices have been seen in nearly 30% over the past seven days.
The rally signals the network’s Stablecoin supply ascends and influx of fluidity into the mantle ecosystem.
Stablecoin influx and bullish indicators signal more upside down
Over the past week, liquidity inflows into the mantle network have skyrocketed. According to data from Defilama, the network’s Stablecoin market capitalization rose 23% in the past seven days, reaching an all-time high of $654 million on Tuesday.
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Higher stability liquidity means that traders have more immediate purchasing power. If market sentiment is positive, this can amplify demand and drive momentum in the price of the asset.
This is the case with MNT, whose seven-day price rallies have been driven by a surge in liquidity over the network during broader market inactivity.
The readings of MNT/USD Daily Chart draw equally optimistic pictures. For example, the directional movement index of MNT indicates a positive directional index (blue; +DI) placed above the negative directional index (orange; -DI) upon pressing, highlighting the strength of the buy-side pressure.
The DMI indicator measures the intensity and orientation of trends by analyzing recent highs and lows.
MNT’s DMI setup shows that it will keep current uptrends intact and support the pressure to sell activities. As long as +di stays above -DI and the gap between them is widening or steady, the bullish momentum behind MNT’s rally will likely last.
Additionally, MNT’s Aron UP indicator, which currently reads 92.86%, supports this bullish outlook. The AROON indicator is a technical analysis tool used to identify trend orientation and intensity by measuring the time that has elapsed since the most recent high or low value.
If Aron Up Line is at 100% or near it, it suggests that recent price action has consistently hit new highs, indicating strong bullish momentum. This applies to MNT, which has skyrocketed in prices to five months’ high over the past three days.
MNT fights to solidify $0.86 as a rally base
With a 4% rise in MNT, the price is $0.86 above the key resistance. If this level is enhanced as a support floor, MNT can extend the rally to $0.99.
On the other hand, if you make a profit, MNT may lose strength and try to test support for new $0.86. If not retained, the token price could drop to $0.71.
Disclaimer
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