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Mantle (MNT) sees a decline of more than 10% in the wake of a significant hack on the Bybit exchange, raising alarms across the crypto community.
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The incident, linked to the infamous North Korean Lazarus Group, results in severe selling pressure on MNT, catalyzing noteworthy fluctuations in trading metrics.
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A recent COINOTAG report noted that the hack’s fallout has led to heightened scrutiny on liquidity pools and security measures within ecosystems like Mantle.
Following a significant hack, Mantle (MNT) faces a steep decline, with critical metrics showing bearish sentiments and potential support at $0.81.
MNT RSI Plummets & Triggers Market Reactions Post-Bybit Hack
The recent hack on Bybit, linked to the notorious Lazarus Group, resulted in the loss of around $174 million, primarily in the form of cmETH, a liquidity provider for ETH in the MNT ecosystem. Mantle’s RSI witnessed a dramatic drop, spiraling from 54.7 to a low of 22.9 in mere hours after the incident. This drastic decline not only indicates an extreme oversold condition but also reflects an underlying bearish sentiment gripping the market.
Market analysts note that a Relative Strength Index (RSI) reading below 30 signals severe overselling, and Mantle’s rapid descent emphasized the panic among traders. In the aftermath, there has been a notable rebound in RSI to 39.9, hinting at a potential recovery, although it still remains in bearish territory. Market sentiment continues to be cautious, as the potential for further downside risk looms, based on the RSI’s performance.
Despite a slight recovery, traders are hesitant, as the threat of renewed selling pressure remains if buying momentum doesn’t pick up significantly. The immediate outlook focuses on whether the RSI can maintain momentum toward a neutral zone between 30 and 50, which could indicate an easing of bearish pressures.
Chaikin Money Flow (CMF) Indicates Lingering Selling Pressure
Mantle’s Chaikin Money Flow (CMF) serves as another significant indicator highlighting the ongoing market pressures post-hack. Initially at negative values, the CMF declined further after the security breach, peaking at -0.35. This trend reflects continued selling activity as investors rushed to liquidate positions.
Currently, MNT’s CMF is moving slowly higher, now at -0.24. While this increase denotes a slight easing of selling pressure, the overall negative reading indicates an overarching sense of fear. Investors are encouraged to monitor CMF alongside price action for signs of potential recovery. Should CMF trend positively, it might signal a shift toward accumulation, pushing traders back into the market.
The correlation between CMF and MNT price movements remains crucial. Should the CMF revert to positive territory, it may bolster confidence among traders and facilitate a stabilization of prices, contrasting the current downward trajectory.
Bearish EMA Trends and Potential Support Levels
The Exponential Moving Average (EMA) analysis for MNT reveals an ongoing bearish trend, with short-term EMAs positioned below the long-term EMAs. This arrangement signifies sustained downward pressure, suggesting a potential test of critical support levels.
If the bearish trend continues unabated, traders should prepare for tests at the support level of $0.81. Conversely, if Mantle shows signs of reversal, the first resistance to watch will be at $0.98, with any breakthrough potentially triggering upward momentum to $1.08. Notably, a shift above this resistance could point towards a more substantial recovery toward $1.31, which represents a viable upside profit potential.
Conclusion
In summary, Mantle (MNT) is navigating a turbulent phase following the Bybit hack, with critical indicators such as RSI and CMF reflecting bearish sentiment across the market. The potential for recovery hinges on trading volumes and market sentiment in the near future. Traders should remain vigilant, as whether MNT can stabilize or recover will largely depend on overcoming key resistance levels and shifting CMF back to positive territory.
