Mantra price has been moving in interesting patterns and showing a sharp rise, which has caught the attention of traders. Renowned analyst Nihilus points to a potential expansion after the liquidity picks up. The accompanying technical chart of the OM/USDT perpetual contract suggests that a breakout could be imminent, potentially sending prices to new heights.
Increased liquidity creates anticipation of a breakthrough
Nihilus' tweet, "Liquidity wiped out. Expansion coming soon." refers to a key event in OM's price action. Chart analysis shows that OM recently broke below strong support at $3.39, triggering stop-loss orders and clearing liquidity. This move is often seen as a setup for market makers to absorb sell orders before pushing the price higher.
Technical analysis highlights a downward trendline labeled “trend liquidity” that has acted as resistance. This trendline indicates an area where short positions have accumulated. A break above this line could trigger aggressive upward momentum, with the chart projecting potential targets of $4.00 and $4.40-$4.60.
Support at $3.39 holds despite pressure
The $3.39 level has become a critical support area for OM. Numerous attempts to push the price below this level have failed, highlighting the strong buying interest. This support has served as a launchpad for potential moves higher, with the price consistently bouncing off after testing this area.
The chart shows that this support level has served as the basis for a liquidity sweep, a move designed to clear out weak hands and consolidate buying power. With liquidity now absorbed, price is poised to test and potentially break the downward trendline.
Image Source: X/Nihilus Technical Indicators Point to a Bullish Outlook
Key technical signals are pointing to the formation of a bullish momentum for OM price. The downtrend that has dominated the recent price action is showing signs of weakening. If the price breaks above $3.80, it could nullify the bearish structure and confirm a shift to the uptrend.
Volume will play a key role in confirming the breakout. Historically, significant price expansions are accompanied by bursts of trading activity. A breakout above the trendline may fit this pattern, paving the way for an upward rally.
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Traders are looking at potential trade setups based on chart analysis. A break above $3.80 could open the door to $4.00 and above, with subsequent targets at $4.40-$4.60. However, caution is advised as a move below $3.39 would invalidate the bullish setup and signal potential continuation of the downward move.
This changing situation makes OM a cryptocurrency to watch in the coming days as the market awaits confirmation of the anticipated breakout.
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Post Mantra (OM) Price Could Rise Sharply as Liquidity Grab Hints at Massive Bull Run!
