Key Takeaways
MNT has seen major liquidity outflows as its TVL continued to drop. The liquidity heatmap shows a unique path to a potential rally, backed by spot investors who placed $60 million in buy orders.
Mantle [MNT] has recorded one of its steepest declines in recent days, falling 9%. This followed weeks of strong performance where the asset gained 61.76% in just four weeks.
AMBCrypto’s analysis suggested that a further decline could occur before a potential full-scale rally, which may trigger another upward move for the asset.
Liquidity outflow on the rise
The decline in MNT’s value has been driven by investors shifting from a long-term perspective to a short-term market outlook.
In the past 24 hours, TVL fell by 2.22% to $231.06 million per DeFiLlama. This places the asset just $3.69 million away from reaching its lowest TVL point on record.
A continued outflow of this scale confirms that investors are adopting a short-term outlook, which weighs heavily on the asset’s overall performance.
The derivatives market mirrors this trend. Contracts worth $13 million were removed in the past day as Open Interest fell, leaving $119 million in active contracts.
That’s not all. Volume in the derivatives market has tilted in favor of the bears. At the time of writing, the Taker Buy-Sell Ratio had dropped to 0.9324.
This sharp decline in both liquidity and trading volume signaled mounting selling pressure, with strong momentum driving it.
This suggests that perpetual market inv
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Author: Olayiwola Dolapo
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