Mantra ($OM) price is facing a critical technical phase as multiple indicators point to potential bearish pressure. The DeFi token has fallen 13% over the past seven days, continuing its correction from its all-time high reached on November 18, with the current price down 21% from that peak.
Technical indicators show a mixed picture, with the RSI remaining neutral while the Ichimoku Cloud suggests increasing bearish momentum. Adding to the uncertainty, a potential death cross pattern is emerging, which could accelerate the downtrend if confirmed.
OM's RSI has been neutral since December 3
The Relative Strength Index (RSI) for $OM has maintained a relatively neutral reading of 38.3, indicating minimal volatility since December 3. The RSI is a momentum oscillator that ranges from 0 to 100, with readings below 30 indicating oversold conditions and above 70 indicating overbought conditions. The range between these levels, especially around 40-60, typically indicates a neutral market state where neither buyers nor sellers have control over the decision.
With the current Mantra RSI at 38.3, the asset is slightly below the neutral point of 50, indicating mild bearish pressure but not enough to indicate oversold conditions. This extended neutral RSI phase could indicate a consolidation phase, with a potential move in the direction of the indicator breaking clearly above 50 (bullish) or below 30 (bearish).
The current reading suggests that traders may be waiting for a stronger signal before making significant moves, although the slight bearish bias at 38.3 warrants attention to potential downside risks.
Ichimoku Cloud shows bearish trend for $OM
The Ichimoku Cloud chart for $OM shows a developing downtrend over the past week. The green line (Chikou Span) has crossed below the price action, while the blue line (Conversion Line) has fallen below the red line (Base Line), forming a bearish crossover around December 19.
The cloud itself has turned from green to red, indicating a shift from bullish to bearish sentiment. The price is currently trading below both the cloud and all the major Ichimoku lines, indicating strong bearish momentum. However, as all the lines begin to converge near the current price, this could signal an upcoming period of consolidation or trend change.
OM Price Prediction: $3.31 Support Level Is Fundamental
The short-term moving average for OM is currently holding above the long-term one, albeit with decreasing momentum suggesting a possible Death cross. If this bearish signal occurs with the short-term MA crossing below the long-term one, Mantra price could face increased selling pressure pushing it towards the $3.31 support, with a potential drop to $3.03 if the first support fails.
Conversely, if $OM price can regain bullish momentum before the death cross forms, the price could target the immediate resistance at $3.76. A successful break of this level could pave the way for extended gains towards $4.25, although this scenario would require a clear change in the current market sentiment and possibly a new rally in the real-world asset (RWA) narrative.