More concentration on the cards?

TL;DR

Mantra (OM) surged more than 60% in the past 30 days, hitting an all-time high of $1.50 with analysts predicting another jump. The chain’s metrics suggest continued gains, but the RSI indicates that it may be overbought, indicating a possible correction.

New peak for OM

Most major cryptocurrencies have experienced severe ups and downs in recent weeks. Bitcoin (BTC), for example, fell to $60,000 in early October and then recovered to its current $63,000 (according to CoinGecko data).

However, there are some digital assets, whose prices have mostly increased lately. An obvious example is Mantra (OM), which is up more than 60% monthly. Today (October 7), it hit a new all-time high of nearly $1.50, while its market capitalization surpassed $1.2 billion.

OM Price, Source: CoinGecko

The token’s achievement caught the attention of several industry participants. Popular X user IBCIG stated that OM’s momentum is “truly unstoppable”, and expected a further rally to $2.

“With its purpose-driven tokenomics and strong layer 1 foundation, it is by far among the best RWA projects in my portfolio,” they added.

Daan Crypto Trades and Token Sherpa also participated. The former said that OM performed “incredibly strongly throughout the chaos of the last few weeks/months”, while the latter believes that the new peak is just the beginning of a big bull run.

Chain metrics flash buy signal

More than a dozen important metrics suggest that OM’s bull run is nowhere near its end. One of them is the Momentum Indicator (MOM), which measures the rate of change of the asset and compares the current valuation with the price of previous periods. At the moment, it is fixed around 0.2, presenting a potential buying opportunity.

The simple moving average (on a 10-day scale), the exponential moving average (monthly), and the hull moving average also indicate potential gains in the near future.

One of the few metrics that hint at a possible correction is the Relative Strength Index (RSI). The momentum oscillator has crossed a ratio of 75, entering overbought territory. This suggests that OM may be overvalued and a pullback could occur.

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