Mantle price flashes multiple bullish reversal patterns, can it recover from January losses?

Mantle’s price has declined over 22% in the past two weeks, largely tracking a broader market correction. However, several emerging technical signals suggest the token’s downtrend may be reaching an inflection point.

According to data from crypto.news, Mantle (MNT) price fell nearly 22% from $1.13 on Jan. 6 to $0.88 last check, morning Asian time. Zooming out the charts, the losses extend to nearly 69% from its all-time high of $2.86 attained in October last year.

Mantle’s price has pulled back as the crypto sector faced a fresh wave of liquidations moving into 2026. This downturn follows a volatile period where Bitcoin struggled to reclaim the six-figure mark, which it surrendered during a correction in mid-November last year.

Recently, global markets have been rattled by renewed trade hostilities between the U.S. and the European Union. Sentiment has turned “risk-off” following President Trump’s recent ultimatum demanding the acquisition of Greenland. At the same time, the crypto market is being weighed down by delays around a key market structure bill currently moving through the U.S. Senate.

Lack of demand from speculative traders has also been another significant headwind weighing down Mantle’s price. Data from CoinGlass shows that Mantle futures open interest has plunged to $59 million from the $490 million recorded in October last year.

Even a listing on the popular U.S. crypto trading platform Robinhood yesterday failed to lift investor spirits amid the broader market meltdown.

However, underlying on-chain data is starting to decouple from the bearish price action. Data from Nansen indicates a notable exchange outflow event, with MNT reserves dropping from a monthly peak of $1.93 billion to $1.89 billion.

Usually, when exchange balances drop like this, it means people are pulling their tokens off platforms and moving them into private wallets. It’s a classic signal that investors are settling in for the long haul rather than looking to sell.

Looking at the daily timeframe, Mantle is currently navigating a descending parallel channel. While this structure maintains a clear bearish bias in the short term, technical analysts often view it as a bullish continuation pattern. 

A decisive daily close above the upper resistance boundary would signal a trend reversal that could trigger a high-momentum breakout as shorts are squeezed and sidelined capital re-enters the market.

It has also formed a double bottom pattern, another bullish reversal pattern that occurs when an asset price forms two consecutive troughs at roughly the same horizontal level, separated by a peak.

If buying pressure picks up pace and investors continue pulling MNT out of exchanges, a successful defense of the $0.85 floor could ignite a relief rally, with bulls likely challenging the psychological $1.00 resistance first. A clean breakout above that level would validate the pattern’s upside, potentially extending the rally toward the $1.20 target projected by the channel’s height.

However, if Mantle price loses the $0.85 support, it could fall towards the next key support area, which has formed around the Aug. 2 low of $0.67.

For now, technical indicators like the MACD and Aroon are leaning bearish. The MACD lines were still below the zero line at press time, suggesting that the downward trend still has substantial strength and momentum.

The Aroon down at 85.7% also stood much higher than the Aroon up at 0%, another telltale sign that bears remain in complete control of the price action and that a new trend low may be imminent before any recovery begins.