Crypto whales have taken profits after MANTRA (OM) price surged 160% in the past 24 hours to hit a new all-time high on Monday, November 18.
The move caused the price of OM to fall back. But will the price continue to fall? Or will it rebound?
MANTRA profit taking increases, demand falls
According to data from IntoTheBlock, net flows from MANTRA’s large holders have decreased over the past 24 hours. The metric tracks the activity of addresses holding between 0.1% and 1% of all cryptocurrencies.
When the indicator rises, it means that crypto whales are buying more tokens than they are selling. On the other hand, when the net flow falls, it means that whales are selling more tokens.
In this case, the MANTRA whales seem to have taken advantage of the altcoin’s price increase to profit. As a result, the price of OM dropped from $4.47 to $3.86. If the whales continue to sell, then the value of the token may continue to fall.
MANTRA large holder net flows.
Additionally, on-chain data from Santiment shows that the project’s network growth has dropped significantly. For context, network growth measures the number of new addresses created and successfully transacting on a blockchain.
A rise in this metric typically indicates growing demand for a coin, pushing its price higher. However, the current drop suggests that OM is struggling to attract new demand. If this trend continues, it could hinder the altcoin’s ability to sustain price gains.
MANTRA NETWORK GROWTH.
OM Price Prediction: The altcoin is overbought
According to the daily chart, the price of OM encountered resistance at $4.23, causing the altcoin’s value to drop to $3.85. Moreover, the Relative Strength Index (RSI) has risen above the 70.00 area, indicating that the coin is overbought.
The RSI is a widely used technical indicator for measuring momentum. It measures the speed and magnitude of a cryptocurrency’s recent price changes to determine if it is overbought or oversold.
When the reading is below 30.00, it indicates oversold. But since the reading is above 70.00, it means that the price of MANTRA is overbought. Therefore, the price of the Real-World Assets project may drop to $3.20.
MANTRA Daily Analysis.
In a highly bearish scenario, the coin could drop to $2.58. On the other hand, if MANTRA whales start buying again, the sentiment could change. In this case, OM could rise to $4.54.
