Date: Mon, Jan 06, 2025, 09:59 AM GMT
The cryptocurrency market is showing strong momentum in altcoins, fueled by a decrease in Bitcoin (BTC) dominance from 58.12% on December 31 to 57.17% today. This environment has proven favorable for tokens like Mantra (OM), which is gaining traction with significant weekly gains and currently testing key resistance levels.
Source: Coinmarketcap
Bullish Pennant Formation
In November 2024, Mantra (OM) experienced an impressive bullish rally, pushing its price from a low of $1.28 to a high of $4.52. After this surge, the price consolidated within a bullish pennant pattern, forming a triangle structure as the market corrected. During this phase, OM visited the lower support level of $3.43 multiple times, providing a strong base for recovery.
Mantra (OM) 1D Chart/ Coinsprobe (Source: Tradingview)
Following the broader market rebound, $OM has climbed back to its current price of $3.93, approaching the upper resistance of the bullish pennant. If OM successfully breaks through this resistance, it could target the next significant resistance zone at $4.60—a potential 17% upside from its current price.
On the flip side, failure to break above the resistance may result in a pullback toward the $3.68 support zone within the pennant. A retest of support could give OM another chance to consolidate before making another breakout attempt.
Key Indicators
MACD (Moving Average Convergence Divergence): The MACD is showing a mild bullish crossover, signaling potential upside momentum. However, the histogram suggests that buying pressure remains relatively moderate, and traders should watch for a surge in volume to confirm a breakout.
RSI (Relative Strength Index): Currently sitting at 58.69, the RSI indicates that OM is in a neutral zone with room to climb further into bullish territory. A push above 60 could validate a breakout attempt.
What’s Next?
Mantra (OM) is at a critical juncture as it tests the apex of the bullish pennant pattern. Traders and investors should closely monitor the price action near the $3.93–$4.00 level for signs of a breakout. A decisive move above resistance, supported by increased trading volume, could propel OM toward the $4.60 target.
Conversely, a rejection at resistance would shift attention to the $3.68 support level. A breach below this support could invalidate the bullish pennant, leading to a more significant correction.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always conduct your own research before making investment decisions.
