Mantra (OM) price recently hit a new all-time high on November 18 and has surged 155.29% in the past seven days. This explosive rally highlights the strong bullish momentum that has pushed OM to its highest level so far.
However, recent indicators, including the RSI and Ichimoku Cloud, suggest that the uptrend may be weakening.
OM RSI shows neutral zone
OM’s relative strength index (RSI) currently stands at 52.7, below the overbought levels reached between November 16 and 18, when the index remained above 70 and Mantra prices hit all-time highs as the narrative around real world assets (RWAs) continued to grow.
This decline indicates a slowdown in buying momentum, suggesting that previously strong upward pressure has eased. This shift reflects a more balanced market, with buyers and sellers now exerting similar influence on OM prices.
The RSI measures the strength of price action, with levels above 70 indicating strong bullish momentum and potential overextension, while levels below 30 suggest strong bearish pressure.
OM’s RSI is 52.7, which is in neutral territory, indicating that the market is neither overheated nor oversold.
Ichimoku Cloud shows Mantra uptrend is weakening
The Ichimoku Cloud chart for OM shows that the price is showing signs of weakness. The price has fallen below the Tenkan-sen (blue line), indicating a loss of short-term momentum, and is now approaching the lower boundary of the Green Cloud (Kumo).
A break below the cloud would signal a shift to a bearish trend as the cloud often acts as a key support area.
The green cloud ahead is still relatively thick, suggesting that while the overall trend may still have some support, this support is being tested.
If OM price closes below the cloud, it could indicate that the recent uptrend could reverse into a sustained downtrend.
OM Price Prediction: Will Mantra Drop Below $3 in November?
If the downtrend in OM continues to strengthen, it might test its nearest support area at $2.98. Failure to hold this level could lead to a further decline in the price, potentially to $1.81.
Such a scenario would signal a more severe bearish reversal and a significant loss of momentum.
On the other hand, if the uptrend resumes, OM price might test the $4.53 resistance area towards new highs.
A breakout above this level could see OM surpass its previous peak and set new all-time highs, making Mantra one of the most relevant tokens in the RWA ecosystem.
