Despite Mantle Announcing Major Ecosystem Updates, the MNT Token Remains in a Bearish Trend

Despite Mantle announcing major ecosystem updates, the MNT token remains in a bearish trend—though it has established a new, major support level managed to hold it

Mantle (MNT) has been struggling to recover despite the project announcing major ecosystem updates and securing impressive figures in Q1.

While the token price has managed to hold a new, major support level for the past few weeks, it’s yet to show signs of recovery.

On March 2, Mantle announced some of its biggest moves yet with a letter to MNT token holders. The project highlighted the upcoming launch of Mantle Banking, a unified fiat-crypto neobank, and Mantle Index Four (MI4), a tokenized, institutional-grade crypto fund, with an initial commitment of $400M to crypto tokens.

Mantle just released their Q2 letter to token holders, highlighting some of their biggest moves yet.

A tokenized index fund with an initial commitment of $400M to crypto, and upcoming strategies for a unified fiat-crypto neobank are among the highlights.

Despite these developments, MNT has been in a clear downtrend since early February.

The price has been consistently making lower lows and lower highs since Feb. 3, when it started trading below both the 20-day Exponential Moving Average and 50-day Simple Moving Average. However, it broke above the 20-day EMA for about two weeks in March, while still trading below 50-day SMA. On March 30, MNT dropped back below the 20-day EMA ($0.79) where it continues to hover, currently trading at $0.74.

The Relative Strength Index is at 38.60, trending downward but not yet in oversold territory, meaning there’s still room for more downside. The MACD indicator remains bearish, with both the MACD line and the signal line below zero. Overall, the bearish pressure dominates for now.

On the bright side, the price has been holding a major horizontal support zone at around $0.72 since mid-March. The first major resistance is at $0.80, aligning with the 20-day EMA. A stronger resistance level is at $1.00, where the price consolidated in February before resuming the downtrend.

A move above $0.80 would be the first sign of potential recovery, but for a chance of trend reversal, MNT would need to break above $1.00 with strong volume and sustain it.