Users are fleeing, but derivative traders are still betting big on Mantle.

Yesterday, Mantle (MNT) continued its bearish trend, losing 8.45% and falling to a level of 1.14 USD. However, analysts observed a clear divergence: on-chain indicators showed bearish signals, while derivatives traders continuously opened more long positions.

On-chain users are leaving the market

On-chain activity shows that investors are no longer enthusiastic about the recent recoveries; instead, they are choosing to withdraw from the market.

At the time of writing, the number of Daily Active Addresses ( for Mantle has sharply declined. According to data from Artemis, the number of active users has fallen to just 10,700, while the daily transactions have also dropped to 199,300. The average transactions per user are only 18.6.

![])https://img-cdn.gateio.im/webp-social/moments-1d4abffa1b0b51a9fc9a31dca4f764d8.webp(Source: ArtemisAnalysts forecast that these numbers may continue to shrink further, as the number of returning users ) is declining. Just yesterday, the number of returning users dropped to 9,900. This indicates that when the average transaction volume is completed, the likelihood of users returning is almost very low.

The overall decline in on-chain indicators signals that the demand and usage levels of MNT are decreasing, thereby putting pressure on the price.

Derive traders confront the bears

On the contrary, derivative traders have taken the opposite action. Over the past 24 hours, long positions have dominated the market. At the time of writing, as much as 68.9% of the trading volume in the derivatives market comes from investors going long, according to the Long/Short Ratio data from Coinalyze.

Source: CoinalyzeAdditionally, the aggregated funding rate has turned positive at 0.0078%. This positive indicator shows that longs are willing to pay fees to maintain their positions. Typically, this signal appears when the market has a tendency to support longs, suggesting the potential for sustaining the upward momentum.

Source: CoinalyzeIf buying power from long positions continues, MNT may regain an advantage in the market.

Heat map reveals two scenarios

The liquidity clusters on the heat map of MNT indicate that this altcoin may move in both directions, according to data from CoinGlass.

A scenario indicates the possibility of a slight price fall before a rebound. Liquidity clusters below the 1.14 USD mark are likely to be swept first, thereby turning these areas into new demand zones after being filled.

Source: CoinGlassThe second scenario draws an optimistic outlook for a price increase in the near future, as MNT sweeps through the liquidity clusters above the current price level. However, the risk of a correction still exists, as the unfilled liquidity clusters remain below.

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