MNT, the token that powers the Layer 2 (L2) stack for Ethereum, Mantle, has witnessed a gradual surge in its supply on cryptocurrency exchanges in the past few days.
This comes as the token holders begin to take profit following the double-digit rally in its price in the past few weeks.
Mantle Holders Seek Gains
At press time, Mantle (MNT) trades at $0.89, recording an 18% price uptick in the past seven days. Taking advantage of the price rally, MNT holders have begun to distribute their tokens for profits, as evidenced by its rising supply on exchanges.
According to Santiment’s data, 321 million MNT tokens worth around $286 million at current market prices are held in wallets on exchanges. The token’s supply on exchanges initiated an uptrend on July 17 and has since risen by 3%.
An increase in an asset’s supply on exchanges means that its holders are preparing to sell their tokens. It reflects a bearish market sentiment, where investors expect the asset’s price to drop and are, therefore, looking to liquidate their holdings to prevent losses.
MNT holders are incentivized to sell their tokens because transactions involving the altcoin have been significantly profitable in the past few days.
Read More: What Is Mantle Network? A Guide to Ethereum’s Layer 2 Solution
The seven-day moving average of its daily ratio of on-chain transaction volume in profit to loss indicates that, over the past week, for every MNT transaction resulting in a loss, 1.59 transactions have yielded a profit.
MNT Price Prediction: Price May Drop To $0.80 Or Rally Towards $0.93
If profit-taking activity continues, it may put downward pressure on MNT’s price. It may drop to exchange hands at $0.80. It may fall further to the $0.50 price range if token holders continue to sell while new demand slows.
However, if the trend shifts towards more token accumulation, MNT may extend its current rally to trade at $0.93.
Disclaimer
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