After April’s 90% crash, OM shows signs of life | Credit: Hameem Sarwar
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Key Takeaways
OM’s price surged 35%, and trading volume exceeded $1.3 billion — its highest level since April’s crash.
Data reveals support between $0.17 and $0.30, but limited upside unless demand overwhelms supply.
Technical indicators suggest a cooling trend, hinting at potential OM price consolidation or drop.
For the first time since its 90% price crash in April, MANTRA (OM) has seen its trading volume surge past $1 billion. This surge coincides with a strong 35% price rally over the last 24 hours.
At press time, OM’s price is $0.32, the highest it has been since May.
Despite the recent uptrend, this on-chain analysis reveals that the token might find it challenging to trade higher. Here is why.
MANTRA Volume Climbs
At press time, MANTRA’s trading volume has surged to $1.31 billion, signaling heightened activity around the cryptocurrency. The last time volume reached this level was on April 30, when OM plunged by 90% in under 24 hours.
Back then, intense selling pressure drove the spike in volume. This time, however, the story appears different.
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The latest MANTRA trading volume surge has come alongside a price increase, which is generally considered a bullish sign from a trading perspective. It suggests that buyers, not sellers, are dominating the market.
That said, the momentum may be fading. Despite the earlier rally, OM’s market value has pulled back from $0.36 to $0.32, hinting that the uptrend could be losing steam.
Therefore, if buying pressure continues to weaken, the probability of an extended rally diminishes, and OM could enter a period of consolidation.
Challenge Looms
This outlook is further supported by on-chain data from the Global In/Out of the Money (GIOM) metric. As shown below, OM’s strongest support zone lies between $0.17 and $0.30.
Within this range, approximately 3,630 addresses accumulated 185.71 million OM tokens, which are currently in unrealized gains.
However, a resistance zone exists between $0.72 and $2.41, where around 5,300 addresses purchased 309.46 million OM tokens. This higher concentration of potential sellers above the current OM price poses a notable resistance.
Given the imbalance between supply at higher levels and demand at lower ones, OM’s price may struggle to breach the $1 mark, let alone sustain a move beyond it.
OM Price Prediction: Major Hurdle Ahead
On the daily chart, CCN observed that OM’s price broke out of a falling trendline to rise to $0.36. However, the same chart shows that the altcoin is now overbought, based on the Relative Strength Index (RSI) position.
Due to the RSI position, OM risks sliding below $0.23. Besides that, the Bull Bear Power (BBP) has declined to the zero signal line, indicating that buying pressure is fading.
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.
