Mantle (MNT) is experiencing moderate downward movement, declining 3.42% in the last 24 hours. Meanwhile, Bitcoin increased by 0.6%, and Ethereum decreased slightly by 0.28%. The overall sector is weak across Layer-2 tokens, with institutional profit-taking contributing to current price trends. Liquidity has declined, with a 21% drop in 24-hour trading volume to $56.2 million, leading to increased intraday volatility. During this period, the Mantle price lagged behind both Bitcoin and Ethereum.
The primary driver of Mantle’s near-term price action is institutional profit-taking. Dragonfly Capital deposited 6 million MNT, roughly $6.95 million, into Bybit over seven days in December, while retaining 9.15 million MNT, approximately $10.76 million. The remaining position indicates a reduction rather than a full exit, but the exchange deposit increases immediate sell-side supply.
This behavior fits broader December fund dynamics highlighted by Nansen. Wintermute led profitability with $3.17 million in realized gains, followed by multiple Dragonfly wallets reporting $1.9 million, $1.0 million, and $990,000 in realized gains. Nansen noted that “profits are concentrated among a small group of repeat funds, not one-off wallets,” underscoring the concentration of institutional trading activity.
These profitable funds subsequently shifted toward selling. QCP Capital transferred 199.99 ETH to Binance on December 26, a move typically associated with preparing assets for sale. Wintermute also reduced exposure after building positions earlier in the month. In Mantle’s case, this profit-taking coincides with reduced trading volume, meaning lower liquidity increases the impact of sell orders on price.
On the network side, Mantle developers announced the v1.4.2 mainnet upgrade scheduled for January 14, which aims to support the Ethereum Fusaka upgrade. The upgrade is operational in nature, involving configuration changes and short service interruptions, rather than an immediate speculative catalyst.
Mantle Price Outlook: Key Levels to Watch
Short-term indicators lean bearish. The indicators summary shows a strong sell bias, driven primarily by simple moving averages that remain below key trend levels. The Relative Strength Index near 35 signals soft momentum without entering oversold territory, indicating pressure persists but capitulation has not yet been confirmed.
Dippy.eth argued that “$MNT is one of the best bets for the coming years,” adding that it could perform “as well as Bitcoin in terms of profitability,” and pointed to “additional APR and literally constant new mechanics.”
His chart showed MNT outperforming ETH and BTC on a relative basis, with Mantle price near 25% while Ether and Bitcoin were flat to neutral. His view is positioned on a multi-year horizon rather than current price action.
TradingView price charts show steady intraday declines consistent with institutional de-risking and SMA-driven trend pressure. With RSI not yet oversold, selling does not appear exhausted. Traders are watching whether the price stabilizes before the RSI reaches oversold territory, or whether continued institutional selling forces a retest of lower levels.
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