- Mantra Hits New Heights but Faces Potential Reversal
- Technical Indicators Signal Caution
- Will Mantra Reach the $10 Milestone?
Mantra Hits New Heights but Faces Potential Reversal
Mantra (OM) has been making waves in the Real World Asset (RWA) sector. The altcoin surged 11% this past week, pushing its monthly gains to an impressive 141%. On February 22, it reached an all-time high of $9. However, a recent 2.7% dip has brought its price down by 8%, raising questions about whether a correction or a deeper reversal is underway.
FOMO has driven much of Mantra’s recent rally, but traders are starting to wonder if the top is in. Despite its strong growth, OM faces headwinds that could stall further gains.
Technical Indicators Signal Caution
The charts reveal key warning signs. Mantra’s Relative Strength Index (RSI) recently dropped to 63 after surpassing the overbought threshold of 70. This suggests buying pressure is cooling off. The price action follows a broadening ascending wedge pattern, often a precursor to a potential downturn.
Adding to the caution, the Moving Average Convergence Divergence (MACD) hovers near a “death cross,” indicating possible bearish momentum. Despite these signs, Mantra still clings to an important support level aligned with the 50-day Simple Moving Average (50SMA). This zone has previously acted as a floor, allowing the price to consolidate before attempting another rally.
Will Mantra Reach the $10 Milestone?
If Mantra holds its support zone, a climb to the $10 mark remains possible—a 19% jump from current prices. However, its recent streak of five consecutive weekly gains has pushed the RSI above 75 for most of February. Overextended rallies often lead to pullbacks, making caution essential.
Traders should monitor how Mantra behaves around its current support. A bounce could reignite bullish momentum, while a breakdown might signal a longer-term correction.
Disclaimer: Cryptocurrency investments carry significant risk. This article is for informational purposes only and does not constitute financial advice.
