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.
If this trend continues, it could limit OM’s price chances of rebounding and increase the likelihood of closing March with a negative return.
No Support, Only Resistance
Beyond the technical outlook, the In/Out of Money Around Price (IOMAP) also aligns with this bearish bias. The IOMAP spots support and resistance levels depending on the volume of tokens in unrealized profits or loss.
The greater the volume of tokens in profit, the stronger the support. Conversely, a large volume of tokens held at a loss in a specific price range signals 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.
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.
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