Mantra Hits Highs But Momentum Weakens

Mantra (OM) recently hit a new all-time high, showcasing strong bullish momentum that pushed the token to its peak. However, indicators now suggest that the rally may be losing steam. Market signals, including the Relative Strength Index (RSI) and the Ichimoku Cloud, point to a potential shift in momentum as buying pressure eases.

OM’s RSI has moved to a neutral range, signaling a more balanced market after previously hitting overbought levels. This shift indicates that the intense buying activity driving the rally has subsided, with buyers and sellers now exerting similar influence. The RSI measures market momentum, and its current position suggests neither excessive bullishness nor bearishness.

The Ichimoku Cloud further highlights a weakening uptrend. OM's price has fallen below the Tenkan-sen line, signaling a loss of short-term momentum. It is now approaching a key support zone represented by the lower boundary of the cloud. If the price drops below this support, it could mark the beginning of a bearish trend, with the potential for further declines.

Despite this, the Ichimoku Cloud still shows some support ahead, meaning a recovery is possible if the price holds above the critical support zone. A rebound could see OM testing higher resistance levels, with the potential to break past previous highs if momentum returns. However, failure to hold its current support levels would likely lead to a sustained downtrend.

The current market reflects both optimism and caution, as OM balances on a pivotal point. If the uptrend resumes, it could signal renewed strength for the token and its position in the RWA ecosystem. Conversely, a continued downtrend may result in a significant loss of momentum and a shift to bearish conditions.