MANTRA (OM) Price Stumbles After All-Time High — A Final Push Before Reversal
Has OM Reached a Top? | Credit: Hameem Sarwar
Key Takeaways
- MANTRA announced a partnership with LibreCap on Oct. 31.
- The MANTRA (OM) price reached a new all-time high on Oct. 13.
- Has OM reached its cycle high, or will it continue its increase in November?
The OM price increased significantly in October, reaching a new all-time high on Oct. 13. The all-time high was an increase of nearly 2,400% since the start of the year, making OM one of the best-performing cryptocurrencies this year.
However, the OM price has fallen in the two weeks since the high.
Let’s analyze the OM price action and see if the decline is just a retracement or if the OM price has reached its cycle high instead.
MANTRA Libre Partnership
Last week, MANTRA announced a partnership with LibreCap , opening on-chain access to institutional funds, including the BlackRock ICS Money Market fund. This is done through the Libre Gateway , now deployed in the Mantra Chain.
The MANTRA chain had several other positive developments in October. The biggest one was the launch of the MANTRA Chain mainnet on October 23. MANTRA also partnered with Google Cloud, joined Binance Blockchain Week, and released OM staking rewards.
Nevertheless, the OM price has fallen in the past three days and attempts to find support.
OM Shows Weakness
The weekly time frame OM chart shows that the price increase became more gradual once OM broke out above the final horizontal resistance area of $0.70. Long upper wicks and an ascending wedge pattern, both bearish signs, characterize the price movement.
In addition, technical indicators indicate the OM price might have reached the top. The Relative Strength Index (RSI) has generated bearish divergence since the start of the year, and the Moving Average Convergence/Divergence (MACD) has done so since July.
Both are trending downward, and the MACD is nearly making a bearish cross.
So, the weekly time frame price action and indicator readings suggest the OM price might have reached the top and started a lengthy correction. If one happens, the closest support area will be at $0.70.
Possible OM Price Top?
The most likely wave count suggests that the OM price started a five-wave increase (white) in October 2023.
If the count is accurate, OM is in the fifth and final wave of the increase, which has developed into an ending diagonal, hence the shape of an ascending wedge. The sub-wave count is in black.
The wave count fits with the long-term bearish divergences from the RSI and MACD.
Since sub-wave three is shorter than sub-wave one and Elliott Wave rules dictate it cannot be the shortest, the maximum target for the top of increase that will not validate the count is $2.06. At this point, sub-wave five would be the same length as sub-wave three.
This would mark the OM cycle high, leading to a lengthy A-B-C correction that could continue until 2025.
Final Push Before Reversal
The long-term price action, indicator readings, and wave count suggest that the MANTRA increase is losing momentum, and the price is close to its cycle top.
However, one more final push is possible before OM begins a lengthy correction.
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