OM rallies over 10%, top gainer of the day

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As a seasoned researcher with a keen eye for cryptocurrency trends and market dynamics, I find myself intrigued by the recent surge of Mantra DAO (OM). The ‘god candle’ formation on its daily chart is indeed an auspicious sign, and it seems that this altcoin is not only defying gravity but also challenging the stars.

MANTRA rallied over 10% on Oct. 28 after a god candle formed on the daily chart.

In the past day, the value of Mantra (OM) rose significantly, reaching $1.40, which represents a 66% jump compared to its September low. This remarkable spike followed a so-called ‘god candle’ event that propelled the token from $1.26 to $1.46, boosting its market capitalization to approximately $1.22 million.

The price increase for OM is happening after its daily trade volume significantly multiplied by three, exceeding $92 million, and most of this activity is occurring on Binance.

A significant contributor to OM’s recent surge is the launch of the MANTRA Chain mainnet on October 23. This event enables users to transfer OM tokens from other blockchains onto the MANTRA Chain Mainnet, where they can then stake their tokens to help secure the network and receive staking rewards.

The MANTRA Mainnet offers a higher projected APR for staking compared to Ethereum, adding further incentive for users to migrate their tokens. Users have already bridged over 1 million OM tokens since the mainnet’s debut.

The buzz around an imminent OM airdrop is contributing significantly to the current price surge. In connection with the Mantra Zone competition, 50 million OM tokens are planned to be distributed as an airdrop to ATOM stakers on the Mantra Chain mainnet, sparking much discussion about this alternative coin.

Examining data from CoinGlass reveals a 43% increase in futures market open interest for the OM token, amounting to $44.66 million, implying increased curiosity about this altcoin among short-term traders. Furthermore, the weighted funding rate for OM has plummeted significantly into the negative zone at -0.0534%, signaling that short liquidations might lead to a potential price surge.

Experts believe that the token might experience additional growth, as prominent pseudonymous trader CryptoBull_360 predicts a potential return to OM’s peak value of $1.61 if its trading activity continues to increase. This could potentially result in a 13% rise from its current prices.

A financial analyst known as Altcoin Sherpa also expressed optimism towards OM, yet advised his audience to closely monitor Bitcoin‘s behavior. This is important because Bitcoin’s actions could significantly influence the momentum of the ongoing rally.

Technical indicators

Over the past two weeks, the Relative Strength Index, which had signaled an overbought condition on October 14th, has been trending downwards and is now hovering around a neutral level of 50 as of October 28th. This usually indicates that there’s a low probability of a short-term price correction occurring at present.

Furthermore, the Average Directional Index (ADI), an important indicator used to measure trend intensity, has increased to 32, indicating that the current trend is quite robust.

Despite the optimistic outlook for OM, there remains apprehension among its holders. As reported by IntoTheBlock, the number of large token holders transferring their OM to exchanges has significantly increased from 112,400 tokens on October 20 to a staggering 6.21 million, equivalent to $8.9 million. This trend suggests that whales might be planning to offload their tokens, which is usually an indication of potential selling activity.

It’s worth noting that this situation could potentially unfold given that whales own about 63% of our total supply, and approximately 95% of the holders are currently making a profit. This suggests a potential sell-off might occur.

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2024-10-28 12:06