MANTRA (OM) Tests Critical Descending Triangle Support — Breakdown Looms

Key Takeaways

• Price consolidates above $6.20 following repeated support retests.
• RSI shows bullish divergence while price holds a key level.
• The triangle breakout direction will confirm the next major trend.
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Mantra (OM) is currently showcasing dynamic price behavior across multiple timeframes.

The higher time frame reveals a broader Elliott Wave structure, while the lower time frame emphasizes the current pivot zone.

As the price interacts with the descending triangle support, traders anticipate the next decisive move.

With recent corrective action and Fibonacci levels aligning with support zones, wave count and RSI offer valuable insight into likely outcomes.

OM Price Analysis

The 4-hour chart illustrates a clear five-wave Elliott Wave structure, with OM reaching an all-time high of $9 on Feb. 23.

We saw a 35% decline to a low of $6.20 on March 11, the first time the price reached the 0.5 Fibonacci level in its corrective stage.

A recovery followed to a high of $7 in March, leaving a lower high before reverting to the 0.5 Fib level again on March 22.

After another failed attempt to establish an uptrend, we saw a reversion, indicating weakening upward momentum.

The price remained stable above $6.20 since March 30, but this could be interpreted as a sign of consolidation before a breakdown attempt.

The Relative Strength Index (RSI) on the 4-hour chart shows bullish divergence as it recovered while the price remained still.

This leaves room for a bullish projection in which we can see a bounce from the support zone and a breakout to the upside from the descending triangle.

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However, as the price approaches that triangle’s apex, the breakout direction will confirm the next dominant trend progression.

OM Price Prediction

On the 1-hour chart, OM, we examined the corrective structure in more detail. Its first descending move to March 11 is a lower-degree ABC pattern.

This means its higher degree W wave ended, leaving multiple scenarios for what’s coming next.

The first recovery is another ABC pattern to the upside to a high of $7, where the second sub-wave X of the WXY correction ended.

The following descending move could be interpreted as the third ABC to the downside with sub-wave C still in development, leaving more downside room before completion.

In this case, OM has one more retest of the support zone’s lower boundary at $6 before it can start to reverse and make an upward breakout, with the first target being $6.86.

This scenario is also possible if we label the correction as an ABCDE, which is subdivided into three-wave structures.

We are primarily bearish since the chart currently lacks anything bullish except a slightly bullish divergence.

A breakdown is awaited. Its first target is the 0.618 Fibonacci level at $5.56, while further downside advancement could lead to 0.768 Fib at $4.60.

Key Levels to Watch

• Immediate Resistance: $6.86 (upper bound of the current triangle and target from reversal scenario).
• Key Support: $6.20 (0.5 Fibonacci retracement, tested twice in March).
• Critical Support: $6.00 (triangle base and potential breakdown trigger).
• Bearish Target 1: $5.56 (0.618 Fibonacci retracement level).
• Bearish Target 2: $4.60 (0.768 Fibonacci retracement, full downside extension).
• Short-Term Bullish Target: $6.86 if reversal initiates from current divergence.
• Invalidation Zone: Below $6.00 confirms the continuation of a bearish trend.