- Altcoin has depreciated since its ATH last week
- Bouts of profit-taking could stop OM from hitting another ATH going forward
After surging by over 53% in the past month and defying the broader market slump, Mantra (OM) hit a new all-time high (ATH) of $6.48 on 6 February. This milestone came after nearly 1800% growth over the last year, partly fueled by the rising buzz around Real World Asset (RWA) projects.
However, as often happens after reaching a major psychological price point, OM saw a round of profit-taking that introduced some red candles on the daily chart. With a long-term bullish structure still in play, here’s what traders should watch out for next.
Can OM bulls push for another ATH?
Source: TradingView, OM/USDT
Over the past year, the 50-day Exponential Moving Average (EMA) has reliably cushioned OM’s price dips. This EMA, at press time, was aligned closely with the immediate support level near $4.6.
OM retreated after testing its rising trendline resistance (white trendline) near $6.48. Such a pullback is typical after significant rallies, but the broader uptrend structure will remain intact as long as the price stays above the 50-day EMA.
If OM bounces off the $4.6–$4.7 range, bulls could aim for another run at the $6.48 ATH. However, a close below this support may spark a deeper correction towards the $4.30 zone.
The Relative Strength Index (RSI) on the daily timeframe hovered near 59, showing some room for further downside if bearish momentum persists. Still, a swift recovery above the 60-65 range could encourage buyers to retest higher levels.
Why traders should remain cautiously optimistic
Source: Hyblock
Trading volume surged by nearly 60% to $361.3M – A sign of renewed interest in OM’s Futures market. On the other hand, Open Interest dropped by 3% to $429M, indicating that some traders exited positions after OM hit its all-time high.
Overall, the long/short ratio seemed to be slightly bullish at 1.05. On Binance though, more traders have been betting against OM (short positions dominate with a 0.54 ratio). Both long and short traders saw moderate liquidations to reaffirm more short-term volatility.
It’s also important to monitor overall market trends and Bitcoin’s trajectory. While OM’s fundamentals and the growing RWA narrative provided a favorable long-term perspective, the near-term outlook depends on whether bulls can defend the critical 50-day EMA support or not.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
