In a notable development for the cryptocurrency market, Mantle Network's native token, MNT, has surged by 13% over the past 24 hours. This surge positions MNT as the leading performer among the top 100 cryptocurrencies by market capitalization for that period.

A rise in demand and increasing investor confidence suggest that Mantle's bullish trend may persist in the near term.

Data from Santiment highlights MNT's positive Price Daily Active Addresses (DAA) Divergence metric at 54.67%, signaling increased demand for the altcoin. This metric suggests heightened user activity on Mantle, which could sustain the demand for MNT and further bolster the price rally.

Moreover, MNT's Network Realized Profit/Loss (NPL) remains below zero at -131,000, indicating a decrease in profit-taking activities. The NPL is a measure of the total profit or loss realized by tokens traded daily, with a negative figure suggesting assets are being sold at a loss. This lack of profit-taking may mitigate sell-off pressure, reducing downward market pressure and supporting the ongoing rally.

An analysis of the MNT/USD daily chart shows that the recent rally has pushed MNT's price above its 20-day exponential moving average (EMA). The 20-day EMA helps identify short-term trends by weighing recent prices. Climbing above this average signals a bullish trend, indicating the potential for continued price increases as market sentiment remains positive.

Mantle: Redefining Layer 2 Scalability with Institutional-Grade Efficiency

Mantle, launched in mid-2022, is a Layer 2 blockchain solution built on Ethereum that aims to optimize scalability without compromising security or decentralization. Powered by modular architecture and leveraging optimistic rollup technology, Mantle quickly gained traction as an efficient and cost-effective platform for decentralized applications (dApps).

By January 2025, Mantle’s ecosystem boasts over $4 billion in total value locked (TVL), a 300% increase from its $1 billion milestone achieved in Q1 2024, underscoring its growing adoption among developers and institutions.

If the rally persists, MNT could surpass its resistance level at $1.29 and approach its previous peak of $1.51, achieved last April. Conversely, if selling pressure intensifies, this optimistic scenario would be compromised, possibly leading to a price decrease to $1.11.