Key Highlights
Following Coinbase’s announcement of listing Mantle Perpetual Futures on August 21st, MNT surged by 12.5%. The Futures Open Interest hit an all-time high of $122.67 million, rising by 22.74%.
Mantle [MNT] experienced a 12.55% rally after maintaining support at $0.3, reaching a peak of $0.38 before settling at $0.37. The altcoin’s trading volume spiked by 70.23% to $645 million, and its market cap increased by 11% to $4.62 billion. This rise in volume and market cap indicates significant capital inflow and on-chain activity.
As per reports, Coinbase’s decision to list Mantle Perpetual Futures was the primary driver behind the recent price surge. The official trading of MNT Perpetual Futures on Coinbase International Exchange and Coinbase Advanced will commence on August 21st, leading to increased demand for MNT across the market.
Surge in Mantle Futures Open Interest
The market recovery prompted investors to enter the Futures market to position themselves for future movements. CoinGlass reported a 22.74% surge in Mantle’s Futures Open Interest, reaching a record high of $122.67 million. Derivatives volume also saw a 15.2% increase to $131 million, indicating growing participation in the Futures market.
Source: CoinGlass
The altcoin’s Long/Short Ratio rose to 1.09, with long positions constituting 52% of the total Futures contracts. A dominance of long positions suggests investors are betting on further price gains.
Return of Spot Market Buyers
Buyers re-entered the spot market after a brief hiatus, possibly driven by FOMO. Coinalyze data shows Mantle witnessed 519k in Buy Volume compared to 345k in Sell Volume over the past day, resulting in a positive Buy Sell Delta of 171k, indicating aggressive accumulation in the spot market. Exchange activities also reflected this trend, with Mantle’s Spot Netflow on July 19th showing a higher outflow than inflow.
Source: Coinalyze
Negative netflow in the spot market typically suggests buyer dominance and often precedes price hikes.
Analysis of Momentum Indicators
Speculative buyers flocked to both the Futures and spot markets, driving Mantle’s rally. The altcoin’s Relative Strength Index (RSI) surged to 74, nearing the overbought zone. Additionally, its Chaikin Money Flow (CMF) transitioned from negative to 0.08, confirming buyer dominance.
Source: TradingView
If demand remains strong, Mantle is likely to continue its uptrend, potentially breaking the $1.39 resistance level and aiming for $1.45. However, a sudden fade in speculation could lead the altcoin to retrace back to $1.20.
following sentence:
The quick brown fox jumped over the lazy dog.
The speedy brown fox leaped over the inactive dog.