Mantle (MNT) is experiencing a downward price trend today, joining a wider sell-off in the altcoin market driven by substantial liquidations. Following weeks of strong gains, the token has dipped significantly, raising questions about its recent trajectory. Analysts attribute this decline to multiple interconnected factors: Over-leveraged traders are facing margin calls and forced liquidation as Bitcoin’s price dip triggered selling pressure across the entire crypto market. This cascade effect resulted in a significant drop in Mantle’s open interest. As positions were liquidated, stop losses further exacerbated the downward trend. Additionally, a shift in trader sentiment is evident as Bitcoin dominance increased, prompting a move towards more conservative investments and away from higher-risk altcoins. The Altcoin Season Index has experienced a substantial decline, highlighting the diminished appetite for smaller-cap tokens. Consequently, Mantle experienced a steeper loss compared to its peers, like Ethereum and Solana, falling around 16%, while their losses were only 4% and 8% respectively. This price drop highlights the influence of market sentiment rather than Mantle’s underlying fundamentals. The technical analysis paints a concerning picture; MNT’s price broke below its key support level of $1.76, trading below all major moving averages. The MACD histogram has flipped to bearish territory, signaling a significant shift in momentum and invalidating the earlier bounce from $1.50. A potential retest of the September low near $1.20 seems likely if Mantle fails to stabilize above its current support level. However, the long-term outlook remains promising as the ecosystem continues to grow. This price correction is a necessary part of a healthy market cycle after a recent surge in value. While the short-term chart appears unfavorable, there’s a potential for a new base formation if Mantle can hold its ground above $1.56. Traders remain cautiously optimistic, watching closely whether the token can sustain its momentum and avoid further declines.