MNT exploded as the liquidity of stablecoin on Mantle reached an all-time high

The native Token of Mantle, MNT, is currently leading the bullish rankings. In the past 24 hours, the price of MNT has recorded an increase of 4%, extending a strong weekly growth with a total increase of nearly 30% over the past seven days.

This growth surge occurs simultaneously with the increase in the stablecoin supply of the network, indicating a rise in liquidity within the Mantle ecosystem.

Stablecoin flow and positive indicators promise a bullish growth future

In the past week, liquidity inflows into the mantle network have surged. According to data from DeFiLlama, the stablecoin market capitalization of the network has increased by 23% in the past seven days, reaching an all-time high of 654 million USD on Tuesday.

Market capitalization of Stablecoin MNT | Source: DefiLlamaThe increase in stablecoin liquidity means that traders have additional immediate purchasing power. When market sentiment is positive, this can increase demand and drive the price momentum of the asset.

This is completely true for MNT, as its seven-day bullish rally was driven by increased liquidity in the context of a sluggish overall market.

Positive prospects from technical indicators

The indicators from the daily chart MNT/USD also show a positive outlook. For example, the (Directional Movement Index) of MNT indicates a positive directional index (+DI) above the negative directional index (-DI) at this moment, emphasizing the strength of buying pressure.

The DMI index assesses the strength and direction of a trend by analyzing recent highs and lows. The DMI structure of MNT indicates that buying pressure is dominant over selling activity, maintaining the current bullish trend. As long as +DI remains above -DI and the distance between them widens or remains stable, the bullish momentum of MNT is likely to continue.

Moreover, the Aroon Up index of MNT, currently at 92.86%, further reinforces this positive outlook. The Aroon index is a technical analysis tool used to determine the direction and strength of a trend by measuring the time elapsed since the most recent highs or lows.

The MNT Aroon indicator of MNT | Source: TradingViewWhen the Aroon Up line approaches 100%, it indicates that recent price action has consistently reached new highs, showing strong bullish momentum. This is completely true for MNT, as its price has surged to a five-month high in the last three days.

Mnt strives to maintain the $0.86 level as a bullish foundation

The 4% growth of MNT has pushed its price past the important resistance level at $0.86. If this level is solidified as a support base, MNT could extend its bullish run to $0.99.

MNT Price Analysis | Source: TradingViewHowever, if profit-taking continues, MNT may lose strength and test a new support level at $0.86. If it cannot hold, the price of the token could drop to $0.71.

Mr. Giáo