Here’s why Mantle’s MNT rallied 20% today while the crypto market was down (08/06)

Mantle staged a strong rally on Aug. 6, driven by surging network activity and large ETH reserve backing, while the broader crypto market remained under pressure from macroeconomic headwinds.

According to data from crypto.news, Mantle (MNT) shot up 20% to an intraday high of $0.949 before settling at $0.934 last check Wednesday, Aug. 6. The token is currently up 66% from its last month’s low with a market cap of over $3.1 billion.

Mantle’s rally today coincided with its daily trading volume rising by 37% as nearly $500 million exchanged hands between traders. 

Futures activity supporting this uptick. According to data from CoinGlass, Mantle’s open interest surged 10% in the past 24 hours, reaching a record high of $52.6 million. Simultaneously, its long/short ratio remained above 1, indicating that more traders were positioning for further upside.

The rally stood out against a weak backdrop for the broader crypto market, which slipped over 2%, while leading cryptos like Bitcoin and Ethereum dropped 2% and 3.3% respectively during the same period.

Cryptocurrencies and other risk assets remained under pressure from macroeconomic risks, including escalating global trade tensions. The U.S. government recently imposed new tariffs on key imports, sparking concerns of a renewed trade conflict with major partners.

Inverse Head and Shoulders breakout signals further upside

Following today’s price surge, MNT has confirmed a breakout from a multi-month inverse head and shoulders pattern on the daily chart, typically a bullish reversal structure. This pattern consists of three distinct troughs, with the central trough (the “head”) forming the lowest point, and two higher lows on either side (the “shoulders”).

The neckline, or resistance line, sat at $0.85, a level the price struggled to break several times earlier this year, while the head lies at $0.52.

MNT managed to push above this neckline today, and then returned to test it from above. This retest was successful, turning the old resistance into a new support, which strengthens the bullish case.

Technical indicators also suggest more upside. The 20-day moving average has crossed above the 50-day moving average, and the gap between them is growing, usually a sign that the trend is gaining strength.

The short-term technical setup further strengthens the case for a sustained rally. The 20-day simple moving average has crossed above the 50-day SMA, and the spread between the two averages is widening. This crossover is generally interpreted as a change in trend strength favoring the bulls.

Momentum indicators also support this outlook. The MACD lines are moving higher with growing separation, indicating rising upward momentum. Meanwhile, the Relative Strength Index is trending upward but remains below overbought territory, suggesting that the rally may still have further room to extend.

Given the breakout above the neckline and supportive momentum signals, the next logical resistance target for MNT is $1.18, up 27% from the current level. However, this target assumes that broader macroeconomic pressures do not dampen investor sentiment in the near term.

What’s driving Mantle’s outperformance?

Several on-chain and ecosystem developments explain why Mantle outperformed the market today.

First, on-chain analytics platform Lookonchain reported that Mantle has quietly accumulated 101,867 ETH in its newly created Strategic ETH Reserve, positioning itself as the eighth-largest known holder of ETH reserves. 

At the current Ethereum price of approximately $3,623, the reserve is valued at around $369 million. This large collateral base helps ensure the protocol’s financial stability and supports various ecosystem incentives, including hackathons, grants, and liquidity mining programs.

Second, stablecoin liquidity on the Mantle network has surged nearly 25% to $650 million in recent weeks. Since stablecoins typically serve as the foundation for DeFi activities, the growth in stablecoin supply means that on-chain activity on the network has been on the rise.

Third, Artemis Analytics reported that Mantle’s daily active address count has increased by over 1,600% in just a month.

Finally, Mantle’s recent recruitment of two high-ranking executives from Bybit as ecosystem advisors further boosted confidence. These new additions are expected to play a key role in scaling the project’s infrastructure, attract more institutional interest, and support Mantle’s long-term vision of becoming a leading modular blockchain ecosystem.