- Mantra OM rose 15% due to renewed interest from whales.
- There has been a strong accumulation trend this past week amid the pullback.
Mantra [OM] appeared poised to reverse the 24% losses incurred during the mid-October pullback. It increased by 15% in 24 hours, while a known whale increased the accumulation.
According to Spot On Chain, a smart trader was stacking the altcoin after a seven-month hiatus. The whale withdrew $3.8 million OM from Binance, with an unrealized profit of $15 million. Will others follow suit and extend the uptrend?
Mantra OM defends 50% Fib level
Source: OM/USDT, TradingView
The 24% decline in mid-October eased at the 50% Fib level ($1.2).
The level was also close to the dynamic support of the 50-day EMA (exponential moving average, blue line), making it important short-term support.
Should OM extend its recovery to the recent high of $1.6, an additional potential gain of 13% could be achievable. The stochastic RSI reading further supported the potential recovery. It moved out of oversold territory, signaling a likely price reversal.
However, a break below the 50% Fib level will invalidate the aforementioned bullish outlook. In such a scenario, OM could further return to the $1 level.
Mantra OM sees renewed accumulation
Source: Santiment
Data from Santiment further illustrated the Spot On Chain update on the OM accumulation wave. More than 5 million Mantra OM have been stacked and moved from exchanges in the past five days, as evidenced by a spike in off-exchange supply.
This meant that speculators bought the mid-October pullback and continued to stack more OMs at the time of writing.
In addition, supply on the stock exchanges (red) fell sharply during the same period. This indicated reduced selling pressure and an opportunity for OM prices to recover.
The same sentiment was clearly visible in the futures market. OM volume increased by over 700%, while Open Interest (OI) increased by 51%, indicating increased speculative interest in the derivatives market. This could boost the altcoin’s recovery prospects.
Read Mantra [OM] Price prediction 2024-2025
Source: Coinglass
In short, OM could look to accelerate the recovery given the strong accumulation trend and reduced selling pressure. However, the altcoin movement may also depend on the towards Bitcoin [BTC] prior to the US elections.
