MNT Forms Bullish Chart Pattern

While Bitcoin and Ethereum guide the broader market, Mantle (MNT) is presenting a compelling technical setup for traders. The token is currently testing the upper resistance of a descending broadening wedge, a classic chart pattern that often signals an upcoming trend reversal. A successful breakout in the coming sessions could trigger a significant price rally of nearly 30%.

Observing the 2-hour chart, MNT is trading within this bullish pattern, characterized by diverging support and resistance lines that indicate rising volatility. The lower support line, situated around $1.3784, has recently held firm against a correction, sparking renewed buying activity and confirming the pattern’s validity. This accumulation has established a solid technical foundation for a potential upward move.

Key Price Levels to Watch

The price is now compressed against the wedge’s upper boundary, which coincides with the 100-period moving average (MA100) at approximately $1.5819. This confluence creates a critical resistance zone. For the bullish scenario to play out, buyers must decisively push the price above this level. A sustained break would serve as confirmation of the pattern.

If buyers succeed in reclaiming the $1.5819 level, the next technical target is projected to be around $1.8805. This represents a potential upside of about 29% from current levels. To validate the breakout and minimize the risk of a false signal, traders will be watching for a significant increase in trading volume as the price challenges resistance.

Potential Risks and Support Zones

Conversely, a rejection at the current resistance could lead to an extended period of consolidation within the wedge. In this scenario, the key support level to monitor is $1.41. As long as MNT holds above this price, the overall bullish structure of the pattern remains intact, preserving the opportunity for a future breakout attempt.

Beyond the chart pattern, other indicators support a positive outlook. The strong price reaction at the lower support suggests that demand remains robust. Additionally, a general rotation of capital toward smaller-cap tokens could benefit MNT. Traders should closely monitor volume for confirmation of the next directional move.

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