Mantra [OM] has displayed remarkable momentum in the past year. Compared to its price on February 1st, OM has surged by 8,592%, or almost 86 times at present. Even in comparison to the beginning of January, OM has increased by 133%.
This surge comes at a time when other assets like Ethereum [ETH] and Bitcoin [BTC] have either declined or remained stagnant. Mantra has consistently set new all-time highs, with the latest peak hitting $9.17.
The crucial $10 level seems likely to be breached soon.
What is the potential upper limit for OM?
Following the November rally, a series of Fibonacci retracement and extension levels were identified.
Beyond the previous high of $4.5 from that rally, the key extension levels at $5.31, $6.58, and $7.84 have served as both resistance and support levels.
If the current trend persists, the next price targets to watch for are $11.16 and $11.94. Given that Mantra has yet to experience a significant retracement phase, the extension levels from the November rally remain effective.
While the daily RSI did not indicate a bearish divergence, it was approaching that territory. Despite the price forming higher highs, the RSI struggled to keep pace with these gains.
This mismatch could signal an imminent pullback on a lower timeframe. Moreover, the On-Balance Volume (OBV) continued its upward trajectory, indicating ongoing buying pressure.
Traders can potentially take advantage of Mantra’s persistent momentum. Previous rallies in February followed a pattern of range formation, as shown in white on the chart.
In mid-February, a brief dip below the lower range boundary was followed by a rapid 50% price jump.
The recent breakout by OM originated within a range pattern formed around the mid-level range.
Thus, traders might consider waiting for the next range formation and enter the market at the lower range boundaries once a liquidity pool has been established and cleared.
However, this strategy carries risk, and traders should be prepared to exit the position promptly if market conditions shift unexpectedly.
Disclaimer: The opinions expressed do not constitute financial, investment, or trading advice and solely represent the author’s viewpoint.