Mantra (OM) Price Surges 20% as On-Chain Data Signals More Upside Potential

Mantra’s price bounced back this week, with the ongoing drop in exchange balances signaling more potential gains.

Mantra (OM) price showed signs of recovery this week as exchange balances continued to drop, setting the stage for more gains.

Mantra, a leading Real World Asset (RWA) tokenization platform, hit a high of $7 on Tuesday, recovering by almost 20% from the lowest level hit earlier this month.

A key focus was on the continued decline of centralized exchange balances this week.

Data from Nansen showed that OM tokens held on exchanges dropped by more than 7% in the past seven days to 345.94 million, down from over 372 million a week ago. The total supply of OM on exchanges fell nearly 3% to 38.92%.

A decline in exchange reserves signaled that holders were not selling their tokens but were instead moving them to self-custody wallets.

In other data, Mantra’s open interest in the futures market was rising. According to CoinGlass, the total open interest rose to $356 million, recovering from this month’s low of $319 million. Rising open interest was usually a sign that investors were optimistic about the token’s future.

Mantra’s price rose as developers continued their investigations into malicious actors ahead of the GenDrop airdrop. GenDrop is a process where active members of the community will receive OM allocations. In a note, the developers removed 123,195 accounts while 80,000 wallets were unallocated.

Mantra has become one of the best-performing cryptocurrencies in 2024, with its price surging from nearly zero to almost $10. This rally reflected growing confidence in MantraChain, which developers said is the fastest and cheapest layer-1 network for RWA tokenization.

Mantra has also received a license to operate an exchange in Dubai. It also won a deal to tokenize assets worth over $1 billion for a large real estate company in the United Arab Emirates.

Mantra price analysis

The daily chart showed that OM’s price hit a low of $5.86 on March 10 and has since rebounded to $6.90.

This rebound followed the formation of a falling wedge pattern, which consists of two descending and converging trendlines. In technical analysis, a falling wedge is a bearish pattern, but prices usually rebound from it.

OM also formed a bullish pennant chart pattern, which is defined by a vertical line and a triangle formation. Typically, after forming a pennant pattern, prices usually continue trending in the same direction as the pole. In this case, the pennant pattern signaled that OM could continue rebounding.

The token also found support at the 100-day exponential moving average.

Due to these factors, there was a high chance that the token could rebound to its all-time high of $9.12, which is about 32% above the current level. A move above that level could pave the way for more gains, potentially reaching the psychological level of $10.