MANTRA’s (OM) 8-Month Rally in Jeopardy After Sharp 15% Correction

Key Takeaways

• The OM token price declined 15% in March, threatening its streak of green monthly candles since September 2024.
• A rounding top pattern on the daily chart suggests a transition to a downtrend, with the RSI dropping below the neutral point.
• The IOMAP data shows resistance between $6.79 and $6.98, where 419 addresses hold over 99 million OM tokens at a loss.
• Interested in buying or selling MANTRA OM? Read our review of the best exchanges to buy and sell MANTRA.

Since September 2024, MANTRA (OM) has closed monthly with a green candlestick, maintaining a strong bullish trend. This consistent growth saw the Real World Asset (RWA) tokenization project’s token surge nearly every 30-day window.

However, that streak is now at risk, as the OM token price has dropped 15% this month. If the decline continues, the altcoin could post its first red monthly candle since August last year.

But is this downturn set to continue? CCN analyzes the possibilities here.

OM Bulls Struggle to Rally Alive

The OM token price last reached a new all-time high on Feb. 23. At that time, the value skyrocketed to $8.99, representing an 84% year-to-date (YTD) increase.

Today, the token’s value has dropped to $6.37, losing 15% since March began. OM initially broke out of a falling wedge during the daily timeframe and climbed above $7 around March 17.

It then faced resistance around the same region, which led to a rounding top pattern formation. A rounding top typically forms at the peak of a prolonged uptrend, indicating a potential transition to a downtrend as buying momentum weakens.

Following the reversal, CCN observed that the Relative Strength Index (RSI) had crossed below the 50.00 neutral line. The decline in the RSI reading indicates bearish momentum.

No Support, Only Resistance

According to IntoTheBlock data, the OM token price faces resistance between $6.79 and $6.98, where 419 MANTRA addresses hold over 99 million tokens at a loss.

As a result, if OM’s price approaches this level, it could encounter a sell wall that may trigger a pullback.

OM Price Forecast: First Red Monthly Candle Loading

Analyzing the daily OM/USD chart again, CCN noticed that the price has dropped below a key support zone. The support level in question is the 20-period Exponential Moving Average (EMA), which is around $6.61.

Dropping below this region further accelerates the thesis that the OM token price might end in March red. Regarding the potential targets, OM’s price might decline below $6 and fall to $5.18.

However, this trend might change if the altcoin breaks above the 20 EMA. In that case, OM’s price might rise to $7.44, near the 0.786 Fibonacci ratio, possibly extending its bullish run since last year.