MANTRA (OM) Cools Off After All-Time High — Bulls Target $10 Next

Key Takeaways

• OM’s price reached a new all-time high, cementing its position as this year’s top performer.
• On-chain data shows strong support for resuming the uptrend after the recent consolidation.
• The 4-hour chart shows a bull flag formation similar to the previous breakout to a new high.

MANTRA (OM) continues to hold the line as the best-performing cryptocurrency out of the top 100 this year. Year-to-date (YTD), OM’s price has increased by 124% and hit a new all-time high of $9.04 on Feb. 23

However, in the last 24 hours, the altcoin has fallen by 6%, erasing some of its gains over the weekend. Despite that, it does not seem that the token’s price might continue to hit lower values.

Instead, this analysis reveals why OM might soon be in the league of cryptos with a double-digit value.

MANTRA Token Eyes Another Record High

About one week ago, OM’s price hinted at a rally toward the $10 mark. But around the same period, whales sold off some of their assets, delaying that potential run.

Today, several indicators suggest that the uptrend might be back on track. However, the most important signal is the flashing In/Out of Money Around Price (IOMAP).

The IOMAP considers the volume of tokens with unrealized losses or profits to spot support and resistance. Typically, the higher the profit volume, the stronger the support.

On the other hand, a higher volume of losses indicates a sell-wall and potential resistance.

Based on IntoTheBlock’s data, support for OM exists at several price levels. First, it exists between $7.63 and $7.68, where 30 MANTRA addresses purchased nearly 18 million tokens.

Another major support lies between $8.34 and $8.47. In this region, 18 addresses accumulated over 12 million OM.

Due to a larger volume of money, the altcoin is unlikely to face any major resistance ahead. If so, the new OM all-time high could be close.

OM Price Analysis: Bull Flag Shows Up

From a technical point of view, the 4-hour chart shows that OM’s price hit a new high yesterday after breaking a bullish flag.

As seen below, the altcoin formed a flagpole, leading to an uptrend from $5.45 to $8. Later, the price consolidation before another breakout drove OM’s price to $9 over the weekend.

At the time of writing, the token has formed another bullish flag. However, it is trading sideways between $8.38 and $8.65. In addition, the Money Flow Index (MFI) reading has increased, indicating buying pressure around the cryptocurrency.

If this remains the same, another breakout similar to the previous one could be impending. If that is the case, then OM’s price might jump to $10 and hit a new high.

However, if the cryptocurrency’s value fails to rise above $8.65 in the short term and buying pressure fades, this rally might not happen.

Instead, OM could decline to $7.35 at the 0.382 Fibonacci retracement level.

If profit-taking intensifies, this value could be lower, and the altcoin might risk dropping to $6.20.