OM, the native token of the real asset (RWA) blockchain Mantra, has seen a significant rally, rising over 30% in the past 24 hours. The altcoin reached a new all-time high of $4.52 before retreating to $4.20, where it currently trades.
Despite the impressive rise, on-chain indicators point to signs that OM’s bullish momentum may be slowing down.
Mantra Traders Sell for Profit
The net inflow of large OM holders has decreased in recent days. According to data from IntoTheBlock, it fell by 54% between November 14 and 17. This indicates a reduction in accumulation by whales. Thus, it may exert downward pressure on the altcoin’s price.
In short, large holders are addresses that control more than 0.1% of an asset’s circulating supply. The net flow metric measures the difference between the amount these investors buy and sell in a given period.
When it falls, it suggests that whale addresses are reducing their positions. A bearish indicator that could signal increasing selling pressure and a heightened risk of a price decline.
Net flow of large OM holders. Source: IntoTheBlock
This drop in net inflows from large holders was accompanied by an increase in supply on exchanges, confirming the selloff. According to data from Santiment, the supply of OM on cryptocurrency exchanges has increased by 2% in the last three days. As of this writing, 134 million tokens, valued at over $553 million, are stored in wallets on exchanges.
When an asset experiences an increase in supply on exchanges, it indicates that more tokens are being moved from private wallets to exchange wallets. This suggests that investors may be preparing to sell, leading to an increase in selling pressure. Such a trend is typically bearish, as it can result in a potential price drop due to increased supply in the market.
OM supply on exchanges. Source: Santiment
OM Price Prediction
Currently, the RWA asset is trading at $4.20. If profit-taking continues, Mantra could lose its recent gains, potentially falling 15% to $3.56. Should the bullish momentum weaken further at this level, it could fail to hold as strong support, leading to a deeper decline towards $2.80.
OM Price Analysis. Source: TradingView
On the other hand, a resumption of buying pressure could take the token back to its all-time high of $4.52 and possibly beyond.
The article Mantra (OM) soars 30%, whales sell and could end the rally appeared first on BeInCrypto Brasil.
