Mantra [OM] has seen a recent pullback from its peak of $7.9, but the upward trend remains robust.
Currently, Mantra is trading at $7.65, showing a 6.29% increase in the last 24 hours. Over the week, the altcoin has surged by 30.07%, and remarkably, it has climbed by 103.37% in the past month.
This significant price surge in the last month indicates strong upward momentum, with buyers dominating the market.
The current market conditions raise curiosity about the factors contributing to the surge and whether it can be sustained.
Is Mantra poised to maintain its upward trajectory?
An analysis by CryptoCrypto suggests that Mantra is holding a strong uptrend due to increased involvement from large investors in the altcoin. Whale activity has spiked sharply, rising by 407% in the past day.
Rising whale activity indicates confidence among major players in the market’s direction and expectations of further price increases.
While heightened whale activity could involve both selling and buying, the surge in exchange outflow suggests that whales are accumulating more of the altcoin.
Mantra’s spot netflow turned negative for the first time in 5 days, reaching -1.32 million, pointing towards substantial exchange outflow.
The dominance of outflows over inflows signifies investor optimism as they accumulate the altcoin in anticipation of a price surge.
The buying spree is mirrored in the rising Relative Strength Index (RSI) for OM.
Although the RSI currently stands at 73, indicating strength, it has not yet hit overbought levels, leaving room for further growth before a potential correction.
Further reaffirming positive market sentiment are high-volume holders. Mantra’s MVRV long/short discrepancy has increased from 117% to 131% in the past week, showing rising profitability for these holders alongside bolstered market confidence.
What’s on the horizon for OM?
In the face of strong bullish sentiment, OM is testing a critical support level at $7.6. A successful breakout above this level could propel Mantra to a new all-time high.
A daily close beyond $7.6 would confirm this optimistic outlook, setting the stage for further price upswings. Conversely, a market correction at this juncture could see OM retreat to $6.8.