Mantra price loses momentum as whales sell, gets overbought

Mantra’s price rise started to lose momentum as some whales started selling their tokens after being overbought.

The Mantra (OM) token rose to a record high of $4.5260 on Monday before falling slightly to $4.3. It remains one of the best-performing cryptocurrencies, up almost 20,000% in the last 12 months. This increase increased the market value to 3.8 billion dollars.

Mantra’s rally follows its developers’ teaser of an upcoming major announcement. Although no specific details are provided, speculation suggests that the news may include a significant partnership with a major company.

This anticipated announcement comes a month after Mantra launched its mainnet, allowing developers to create tokenized projects in sectors such as real estate and finance. While similar capabilities exist in other blockchains such as Ethereum and Solana, Mantra has positioned itself as the leading chain for these sectors.

There are signs that some Mantra whales have started selling their tokens. One whale transferred $1.3 million worth of OM tokens to Binance, while another sent $534,000 worth of tokens to OKX.

Data compiled by LlamaFeed shows that in total, the tokens were worth over $10 million in the last 24 hours. The largest of these sellers was one who sold $3.6 million worth of tokens and paid a $0.82 transaction fee.

Data from Nansen shows that the volume of Mantra tokens on exchanges has increased by nearly 10% over the past seven days, reaching over $158 million. Currently, 17.8% of all OM tokens are held on exchanges; This means a 1.52% increase compared to the previous week.

Mantra price is overbought OM price chart | source: crypto.news

OM token prices have followed a parabolic trend in recent days. On the daily chart, the Relative Strength Index rose to the overbought level of 92. Similarly, the Stochastic Oscillator reached 92 and the Percentage Price Oscillator started to rise.

As a result, there is a high probability that the token will experience a significant drop in price as momentum wanes. In such a case, Mantra’s price could fall as low as $1.6, its high on October 15; a 62% drop from its current price.