Manta Network (MANTA) has entered a bearish phase in its market structure following a 7% price drop on January 28. Despite a recovery from the initial losses, the cryptocurrency‘s price trajectory suggests a downward trend in the short term. The recent breach of the $3.565 level has raised concerns about a potential bearish outlook.
The increase in MANTA’s Total Value Locked (TVL) can be attributed to its recent listing on major exchanges. However, the momentum of growth has decelerated since the airdrop announcement on January 18. The price range of $3.33-$3.45, previously a demand zone, could now become a supply zone, hinting at a possible retest before any downturn. The Relative Strength Index (RSI) remains above the neutral 50 mark, not yet signaling strong downward momentum.
Market Indicators and Trends
Market indicators such as the On-Balance Volume (OBV) do not show a definitive selling pressure trend. MANTA’s price fluctuations in the past 24 hours have been volatile, with a fall followed by a rise. Open interest, on the other hand, has been declining since January 27, suggesting a short-term bearish sentiment. Conversely, the spot Cumulative Volume Delta (CVD) has maintained an uptrend, indicating sustained buying activity and challenging the bearish trend narrative.
In the current market climate, MANTA may retest certain support zones. The $2.9 support zone could become a focal point if the market continues to shift. Buyers remain hopeful, looking to break above the $3.89 level and potentially retest it for a sustained period.
Overall, Manta Network’s market structure shows signs of a short-term downturn, with key indicators providing mixed signals. While the OBV and CVD offer contrasting perspectives, the decline in open interest and the potential shift to lower support zones suggest that investors should remain cautious in their short-term outlook for MANTA.