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Mantra (OM) Pulls Back 7% From All-Time High as Rally Loses Momentum

Published
Nikola Lazic
Published
By Nikola Lazic
Edited by Ryan James

Key Takeaways

  • OM surged 9,355% from December to October highs.
  • Recent price action signals the potential start of a correction.
  • The key support levels to watch are $1.32, $1.20, and $1.10.

Mantra (OM) experienced a remarkable bullish rally since December 2023, surging over 9,000% to a new all-time high in October. However, recent price action suggests that OM might enter a corrective phase.

Here’s a breakdown of key movements and predictions for OM’s price direction.

Mantra Price Analysis

OM’s last major bullish run began in December last year when the price was around $0.01. It surged by an incredible 9,355%, reaching its all-time high of $1.40 on July 21.

This marked the completion of a five-wave impulse, leading to a downturn.

After hitting the all-time high, OM dropped to $0.82 by Aug. 20. A recovery followed, breaking the descending resistance and reaching $1.07 by Aug. 24, finding resistance at the 0.382 Fibonacci retracement level.

Despite this upward movement, OM reverted slightly higher, finding support at $0.87. As it established firm support there, its next move from Sept. 8 made a higher high of $1.16 on 18, confirming the next bullish phase. 

OM price analysis
OMUSD got overextended | Credit: Nikola Lazic/TradingView 

Since then, OM has risen to a new all-time high of $1.62 on Oct. 14, 54% from its 0.382 Fib level retest on Sept. 18.

The daily chart’s Relative Strength Index (RSI) reached the overbought zone at 83%, signaling that the price became overextended. We saw a 7% decline. 

Were these the early signs of a reversal, or is there more room for the upside? 

OM Price Prediction

A closer look at the hourly chart and wave analysis confirms that the uptrend from Aug. 20 is finished. In its ending wave, we can also spot a five-wave pattern.

This makes the likelihood of the current decline being the start of a corrective phase high. 

If this is true, OM is now developing its first sub-wave of a larger correction with more short-term downside ahead. Our first likely target is at $1.44, after which a lower high will provide the second confirmation of the developing correction. 

Should this happen, another downturn could bring OM to at least the 0.382 Fib level at $1.32.

It would still be in question to which degree this corrective pattern belongs so that further confirmation would be needed. 

OM price prediction
OMUSD finished an uptrend | Credit: Nikola Lazic/TradingView 

But if our count is correct and OM finished a five-wave pattern from Aug. 20, the anticipated correction could proceed to $1.20 or $1.10, where the 0.5 and 0.681 Fib levels are. 

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.
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