Key Takeaways
MANTRA (OM) has shown remarkable price action across multiple time frames, breaking out of critical patterns and setting up for potential continuation in its impulsive Elliott Wave structure.
It reached a new all-time high, slightly above $5, on a 57% rise on Sunday. Despite the parabolic increase, the price is still not overbought, indicating more upside room. What will be its next target?
The daily chart for OM illustrates the completion of a prolonged consolidation phase in Wave 4, confined within a symmetrical triangle.
The breakout above this pattern at the $4.00 level signifies renewed bullish momentum, aligning with the beginning of Wave 5.
This phase often marks significant price expansion. The price reached above $5 on Jan 26, making a new all-time high.
The daily chart Relative Strength Index (RSI) has risen sharply but remains below overbought conditions, suggesting room for further upside.
The clean impulse from Wave 4 lows and the strong breakout candle indicate robust buyer interest, as we saw an increase of 57% in one day.
Although we saw signs of struggle below $5, the upside potential remains. Support remains solid near the breakout point around $4.00, which aligns with the previous triangle resistance turned support.
Considering that $5 is a round number, it is a psychological level for the selling orders.
Its surpassing will indicate more upside ahead, while a fall below $4 will indicate the completion of the long-lasting bull phase.
Zooming into the 1-hour chart, MANTRA is amid a well-structured Wave (i) within the broader Wave 5.
Following the breakout, the price reached the 0.618 Fibonacci extension of $5.01 before entering a consolidation phase, potentially forming Wave (ii).
A retracement to the 0.5 ($4.81) or 0.382 ($4.62) Fibonacci levels is plausible, offering a potential reversal for a retest of the prior resistance for support.
Wave (iii) is projected to lead the price to $6.10 (1.272 extension), with Wave (iv) expected to correct slightly before the final push in Wave (v) toward $7.32 or $7.78.
RSI momentum on the lower time frame remains strong but shows minor divergence, suggesting that a brief consolidation or pullback is likely before the next impulsive move. Sustained volume will be key in confirming these targets.
With the long-term breakout intact and short-term consolidation aligning with impulsive wave theory, MANTRA appears well-positioned for further gains, barring a breakdown below $4.00 that would invalidate the bullish scenario.