OM rallies over 10%, top gainer of the day

MANTRA gained over 10% on October 28 following the formation of a god candle on the daily chart.

Mantra (OM) lost 24 hours to $1.40 and is up 66% from its September low as the ‘god candle’ pushed the token from $1.26 to $1.46, increasing its market cap to $1.22 million.

OM’s price increase came as daily trading volume tripled to more than $92 million, with the majority concentrated on Binance.

One of the key factors behind OM’s rise is the recent launch of the MANTRA Chain mainnet, which went live on October 23; This allows users to bridge OM tokens from other blockchains to the MANTRA Chain Mainnet and stake it to secure the network. Earn staking rewards.

MANTRA Mainnet offers a higher estimated APR for staking compared to Ethereum, providing users with more incentives to move their tokens. Users have bridged over 1 million OM tokens since the launch of the mainnet.

Excitement around an upcoming OM airdrop is also fueling the recent rally. As part of the Mantra Zone competition, 50 million OM is planned to be airdropped to ATOM stakers on the MANTRA Chain mainnet, which has sparked a lot of discussion about the altcoin.

Looking at CoinGlass data, it appears that open positions in the futures market for the OM token increased by 43% and reached $44.66 million; This shows that short-term investors’ interest in altcoin has increased. Moreover, OM’s weighted funding rate dropped sharply to the red zone at -0.0534%; This suggests that short-term liquidations could potentially push the price higher.

Analysts are looking for more bullishness for the token, with so-called anonymous trader CryptoBull_360 predicting that OM could retest its all-time high of $1.61 if trading volume continues to increase, which would represent a 13% upside from current price levels. points out.

Another market commentator, Altcoin Sherpa, was also positive on OM but urged his followers to pay attention to Bitcoin’s movement; This move could be very important because Bitcoin’s performance could push the rise even further.

Technical indicators

On the daily chart, the Relative Strength Index, which reached overbought territory on October 14, has since declined and recently stabilized at the neutral 50 level as of October 28. This means that the likelihood of a price correction in general is low. short term.

OM price, RSI and ADX chart — October 28 | Source: crypto.news

Additionally, the Average Directional Index, an important metric for measuring the strength of a trend, rose to 32, indicating that the trend has significant strength.

While things look promising for OM, there is still concern for shareholders. According to IntoTheBlock, net inflows to exchanges by large holders increased from 112.4 thousand OM tokens on October 20 to 6.21 million tokens worth $8.9 million. This means whales are moving their tokens to exchanges, which is often a sign that they are preparing to sell.

This is particularly worrying as Whales control 63% of OM supply and approximately 95% of shareholders are currently in profit; The chance of this sales scenario occurring is a possibility.