Mantra [OM] seemed poised to recover from the 24% decline experienced in mid-October. It surged by 15% within 24 hours, thanks to increased accumulation by a well-known large investor.
Spot On Chain data revealed that a savvy trader was building up their holdings of the altcoin after a 7-month hiatus. The investor withdrew $3.8 million worth of OM from Binance, with an unrealized profit of $15 million. Will this lead to more investors following suit and continuing the uptrend?
Mantra OM Holds Strong at 50% Fib Level
The mid-October decline of 24% found support at the 50% Fib level ($1.2).
This level coincided closely with the 50-day EMA’s dynamic support (50-day Exponential Moving Average, represented by the blue line), making it a critical short-term support level.
If OM manages to extend its recovery to reach the recent peak of $1.6, there could be a potential additional gain of 13%. The stochastic RSI indicator also supported the chance of recovery, as it moved out of the oversold zone, indicating a likely reversal in price direction.
However, a drop below the 50% Fib level would negate the optimistic outlook mentioned above. In such a scenario, OM might experience further retracement towards the $1 mark.
Mantra OM Witnesses Increased Accumulation
Santiment data corroborated the findings of Spot On Chain regarding the surge in OM accumulation. Over the past five days, more than 5 million Mantra OMs have been amassed and transferred from exchanges, as evidenced by a spike in Supply Outside of Exchanges.
This activity suggests that traders seized the opportunity during the mid-October pullback and continued to accumulate more OM at the time of reporting.
Furthermore, the supply of OM on exchanges (indicated in red) registered a significant drop during the same period. This reduction hints at diminished selling pressure and the potential for OM’s price to rebound.
A similar trend was observed in the Futures market. OM’s trading volume surged by over 700%, while Open Interest (OI) spiked by 51%, indicating heightened speculative interest in derivative trading. This could bolster the altcoin’s prospects for recovery.
In conclusion, with a solid accumulation trend and decreased sell pressure, OM might push for a quicker recovery. However, the movement of the altcoin could also be influenced by Bitcoin’s direction leading up to the US elections.