Retail traders should be cautious after Mantra reaches all-time high: Here’s why

While Mantra made impressive gains last week, reaching a new all-time high, the broader crypto market fell slightly.

Mantra (OM) is up 137% in the last seven days and is up 43% in the last 24 hours alone. OM reached an ATH of $3.42 early Sunday and is trading at $3.34 at the time of writing.

OM price | Source: crypto.news

The native token of the Mantra layer-1 blockchain ranked 38th among leading cryptocurrencies with a market capitalization of $2.85 billion.

Mantra’s partnership with cloud computing giant Google Cloud in late October was one of the key factors in the price. Increased whale inflows on November 14 also increased the bullish sentiment around the token.

However, some on-chain indicators point to a potential correction.

Whale making profit

Following OM’s bull run towards a new ATH, whale accumulation appears to have slowed down.

According to data provided by IntoTheBlock, net inflows to the asset’s large bearer fell from OM2.96 million on Nov. 14 to OM1.8 million on Saturday, breaking the $2.50 mark.

Additionally, the number of daily active OM addresses generating profits increased from 27 on November 13 to 297 unique wallets yesterday, according to ITB data. Considering that 94% of the circulating Mantra supply is in whale wallets, the start of profit taking could potentially trigger a sell-off.

Additionally, according to ITB, more than 24% of Mantra addresses have held the asset for less than a month, and 43% have accumulated the token less than a year ago.

This puts Mantra in a risky position as short-term investors, particularly 6% retail holders, will likely start taking profits before another big rally.