Key Takeaways
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.
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.
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?
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.
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.