OM is down 15% from its all-time high as the token faces consolidation since the year began.
The daily chart shows that the altcoin has formed a bull flag, hinting at a notable breakout.
While OM can reach $5, dropping under key Fibonacci levels could invalidate the prediction.
In 2024, MANTRA (OM) emerged as one of the top-performing altcoins, lagging behind only Virtuals Protocol (VIRTUAL) in the top 100.
It accomplished this feat after soaring by nearly 6,000%, driven by a surge in demand for tokens associated with the Real World Assets (RWAs) narrative.
However, as the new year began, OM failed to establish a strong support level, causing the price to drop by 15% from its all-time high.
Today, MANTRA token appears ready to erase these losses as it nears $4. Can OM reach a new all-time high as a result?
However, it faced rejection as soon as the price hit $4.09. A similar scenario took place on Jan. 7 as OM retried the Dec. 11 move but encountered resistance as it did the face time.
The token’s inability to surpass this level has left it consolidating between $3.43 and $4.10 within the last month.
As seen on the 4-hour chart, this seesaw movement also affected the momentum. Since Jan. 1, the Relative Strength Index (RSI) failed to keep up with an increasing rating.
OM 4-Hour Chart | Source: TradingView
This lack of strength also contributed to the consolidation it experienced over the last few days. But as it stands, it seems that things are about to change.
Why OM Price Can Break Out
One reason for this outlook is the bull flag formed on the daily chart. A bull flag is a bullish pattern characterized by two rallies separated by a brief consolidation phase.
The pattern begins with a sharp, vertical price spike—known as the “flagpole”—caused by buyers overwhelming sellers. Then, a pullback follows, forming a rectangular “flag” shape with parallel upper and lower trendlines, after which the uptrend continues.
As of this writing, OM is on the verge of breaking above the upper trendline of the flag. If validated, then the token’s price is likely to retest $4.55.
Furthermore, the Chaikin Money Flow (CMF), which measures the level of accumulation and distribution, is in the positive region. This reading indicates potential strength for OM’s sustained upswing.
OM Daily Chart | Source: TradingView
Potential Short-Term Targets
If this remains the case, OM’s price could quickly rally to $4.63, surpassing its all-time high in the process. However, the uptrend might not stop there, as the token could rise above the $5 mark.
Alternatively, failure to surpass the upper trendline of the flag pattern might invalidate this forecast. In that case, OM might decline to the 0.382 Fibonacci retracement level at $2.28.
However, a rise in selling pressure could send the price further down. If that happens, the altcoin’s value might sink toward $1.73.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
