Mantle's native token, MNT, has broken out of a downtrend after an investment by World Liberty Financial.

On Monday, March 24, WLFI, a DeFi project backed by President Donald Trump's family, purchased about 3.54 million MNT for nearly $3 million USDC

President Donald Trump’s family-backed DeFi project, WLFI, has made a significant investment in Mantle's native token, MNT, purchasing 3.54 million tokens for nearly $3 million USDC on Monday, March 24.

According to data sources Lookonchain and Arkham Intelligence, the average purchase price was 84 cents.

The latest purchase has increased WLFI's MNT holdings to 5.99 million tokens, valued at around $5.06 million at press time. It also brings the firm's total crypto holdings, which include tokens such as ETH, WBTC, TRX, LINK, AAVE, ENA, and others, to over $81.8 million.

MNT is the native token of Mantle Network, a Layer 2 solution that aims to scale Ethereum more efficiently. It's used for paying gas fees and participating in governance decisions.

Following the news of WLFI's investment, Mantle (MNT) saw a significant intraday surge of 8.5%, reaching $0.849, while its market cap climbed past $2.83 billion. Trading volume also shot up by 66% to around $123 million, indicating renewed interest in the token.

Interestingly, today's rally marked a breakout from the short-term downtrend that MNT had been stuck in since March 17. The token was previously trading at around $0.838 before hitting a local bottom at $0.775 on March 21, just days after the Mantle Mainnet had a hard fork on March 19.

The upgrade saw the integration of EigenDA, a decentralized data availability layer that helps the network handle more traffic by enabling more transactions in each block. This integration also helps Mantle work more smoothly with Ethereum's upcoming Pectra upgrade.

Another development that's drawing in traders is the Mantle Surge campaign, a joint initiative between Mantle and crypto exchange Bybit, featuring a 1 million MNT prize pool for participants who engage with various projects across the Mantle ecosystem.

Recent developments have been well received by the MNT community, and a number of analysts see the potential for more gains in the short term.

According to one analyst, MNT could rally past $0.90 soon as long as it manages to stay above the key psychological support level of $0.80.

"If it manages to stay above the key psychological support at $0.80, then we might see it testing the next round of resistance at $0.90. A break above this level could have it testing the $1.27 level, which it failed to break on two occasions this year."

Meanwhile, fellow trader Lazy Chart Guy viewed recent developments as "bullish" for MNT price, which he believes has hit a "short-term low" after completing a deep 78.6% Fibonacci retracement.

According to the trader, MNT bounced off an RSI low of 29, levels that are usually associated with local bottoms.

"Buyers have already stepped in, and we're up 26% from that fib level. The RSI is now hanging around the midpoint, which suggests there's room for more upside."

According to the analyst, a confirmed retest of $0.66 could present a strong entry opportunity, especially if it's accompanied by a bullish divergence.

"Entry at retest of lower fib, ideally with divergence on lower timeframe. Good luck!"

MNT price analysis

On the 4-hour/USDT price chart, MNT has managed to break out of the descending parallel channel pattern that began on March 17. Such a pattern usually indicates sustained gains in the pending period.

MNT is also trading above the 50-day exponential moving average, and the MACD lines are pointing upwards, signifying that momentum is shifting in favor of the bulls.

The Arroun Up is at 85.71%, while the Arrown Down is at 35.1%, indicating that the bullish momentum surrounding the altcoin far outweighs the selling pressure.

Based on these signals, the next likely target for MNT is $0.90, a key psychological resistance level that also lines up with earlier analyst expectations. A break above this level could push it to test $1.27, a key resistance level that it failed to break on two occasions this year.

However, one potential concern for MNT is that its RSI was sitting in the overbought zone at 75. While this doesn’t confirm an immediate reversal, a short-term pullback could be on the horizon before MNT resumes its upward trajectory.

At press time, MNT was selling for $0.844 per coin.