Manta Network is currently navigating a challenging phase, maintaining its position just above the critical support level of $1.80. This stance comes in response to a broad downturn impacting cryptocurrency markets, led by a recent decline in Bitcoin. Despite bearish signals from multiple technical indicators, the network’s token, MANTA, faces a decisive moment with a significant unlock event on the horizon.
Scheduled for this Thursday, the event will release approximately 21.67 million MANTA tokens into circulation. These tokens, comprising 8.67% of the total supply, are valued at around $42.90 million. This influx could lead to increased volatility as new tokens enter the public domain through an airdrop and a sale.
The distribution method involves an airdrop, targeting eligible community members who may receive tokens for free or as rewards for promotional activities. This method is typically used to boost engagement and expand the user base. Meanwhile, the public sale aspect aims to attract broader participation from potential investors, although it often leads to immediate profit-taking by participants eager to capitalize on the new assets.
As of press time, MANTA is trading at $1.75, recording a decline of over 8% in the past 24 hours. Since deppeging from the $4 mark in March, MANTA has been steadily declining, forming a descending channel. The market cap is $437 billion, while the trading volume is $62 million.
As MANTA defends its current price level, indicators like the Relative Strength Index (RSI), Awesome Oscillator (AO), and Moving Average Convergence Divergence (MACD) suggest potential challenges ahead. The RSI has dipped below the 50 mark, and both the MACD and AO are showing negative trends. These indicators suggest that the price might drop below $1.80, potentially reaching as low as $1.50 before any recovery occurs.
However, there is still potential for a rebound. A recent sweep of liquidity around the $1.80 mark might encourage further buying, which could push the Manta Network price upward. If the price can close above the 50-day Simple Moving Average (SMA) at $2.93, it might attract late investors, boosting the token’s price further. A definitive break above the $3.00 mark would effectively negate the current bearish outlook.
