MANTRA [OM] – Altcoin Surges 20x Since March, What’s Next?

The real-world asset tokenization platform (RWA) known as MANTRA [OM] has recently inked a deal with Dubai-based developer DAMAC to tokenize assets within the Middle East region. This significant agreement, valued at a minimum of $1 billion, was finalized during the initial week of January.

Interestingly, the announcement of the deal did not trigger an immediate surge in price. However, within three weeks, OM reached an all-time high of $5.96 before experiencing an 11% decline in the last few hours.

Integration, breakthrough, re-examination, and progression towards new peaks

Boasting a market capitalization of $5 billion, this token falls under the category of relatively large-cap tokens. MANTRA’s remarkable surge in recent months has been both explosive and consistent. Since March 2024, OM has seen a substantial spike of nearly 20 times, outperforming the majority of the market while maintaining its upward trajectory throughout the past year.

Remarkably, this performance is noteworthy given the high volatility experienced last March and in the preceding month. The period saw the formation of a price range spanning from $3.5 to $4.33. The breakthrough past these levels on January 26th was succeeded by a retest and a sustained uptrend.

Analysis based on Fibonacci extension levels indicates that the upcoming targets lie at $6.56 and $7.82. Following the breakout, the Accumulation/Distribution (A/D) indicator demonstrated an increase in buying volume, while the Moving Average Convergence Divergence (MACD) highlighted strong bullish momentum on the daily chart.

In addition to the price movement, there has been a steady rise in Open Interest, particularly since November. From a value of $46 million in mid-November, the OI escalated to $434 million by the end of January. The consolidation phase witnessed in recent weeks coincided with a reduction in OI.

The growth in Open Interest accentuated a notable speculative interest, indicating a potential decline should OM encounter challenges in upholding its current upward trend. Monitoring OI trends, especially on shorter timeframes, can provide valuable insights into market sentiment and bullish confidence.

Disclaimer: The opinions presented are not intended as financial, investment, trading, or any other form of advice and solely reflect the writer’s perspective.