Mantra’s OM token has witnessed an impressive surge over the last 24 hours, marking a significant price increase of 14.49% to reach a new peak of $7.96.
Following the peak, the token has slightly retraced and is currently trading at $7.58. Additionally, OM’s trading volume has surged by 35% to reach $1.4 billion.
This price rally is not limited to just the daily chart but has also impacted the weekly and monthly charts, with increases of 25.57% and a staggering 98%, respectively. The substantial uptrend raises questions about the driving factors behind this rally and whether OM can maintain these remarkable gains.
Factors Behind Mantra’s Rally
Analysts at CryptoCrypto attribute OM’s rally to a powerful upward momentum driven by a surge in demand.
This surge in demand is evident through the sudden spike in Mantra’s Open Interest. Data from Coinglass indicates that OM’s Futures Open Interest has reached an all-time high of $640.6 million following a notable surge.
When Open Interest climbs alongside rising prices, it indicates a growing inflow of capital into derivative markets, signaling strong confidence in the market’s direction.
Furthermore, the increase in positions aligning with the momentum serves as a confirmation of the prevailing uptrend.
Prospects for Sustaining Gains
As Mantra continues on its strong rally, the price charts depict a consistent upward momentum and an optimistic sentiment prevailing in the market.
This bullish sentiment is reinforced by the dominance of buyers in the market at present, with the Relative Strength Index (RSI) spiking to 76 over recent trading sessions.
Elevated levels of RSI suggest buyer supremacy in the market, often foreshadowing an impending price surge.
The prevalent buyer dominance is further highlighted by a bullish crossover on the order imbalance chart, indicating a higher presence of buy orders compared to sell orders.
Moreover, the growing number of active addresses for Mantra is indicative of increasing user adoption, with active users reaching 8.9k over the past week.
An expansion in active addresses typically supports a sustained price uptrend, signaling bullish price action in the near term.
In summary, Mantra’s current bullish momentum, underscored by buyer dominance and positive market sentiments, positions OM favorably for a continued uptrend.
If this trajectory persists, OM could surpass the $7.9 mark, breach the $8 resistance level, and possibly achieve another all-time high. Conversely, a correction might lead to a temporary dip towards $6.2.