Cryptocurrencies have plunged this week after the Federal Reserve minutes pointed to fewer interest rate cuts than expected, leading to a big surge in bond yields. Mantra price remained steady and defied gravity as it continued to attract buyers. OM was trading at $4, a few points below the all-time high of $4.62. Let’s explore why it may be about to surge.
Mantra price analysis points to more gains
The daily chart reveals that Mantra has formed a highly bullish chart pattern that may lead to more gains soon.
The price of OM started at $0.018 in 2024 and then staged one of the biggest rallies in the crypto industry, peaking at $4.62 and transforming into one of the biggest coins in the market.
Some of the most notable gains occurred in November when it went parabolic. That move has now translated to the flag pole of the bullish pennant pattern, a popular continuation pattern in technical analysis.
Since November last year, the pennant section of this pattern has been forming, and the two lines of the triangle are nearing their confluence.
Mantra price has remained above the 50-day and 100-day moving averages. Therefore, the token will likely have a strong bullish breakout in the next few days. If this happens, the initial target to watch will be the all-time high of $4.6250, which is about 15% above the current level.
A break above that level will signal a jump to $5.8, the 61.8% Fibonacci Extension level, which is about 50% above the current level. The bullish outlook will become invalid if the token crashes below the key support at $3.05, its lowest swing on December 9.
OM price supported by the RWA opportunity
Mantra price is doing well because of the ongoing end-of-year challenge by Binance that allows users to share a prize pool of $1 million in OM tokens and USDC. Users just need to join and subscribe to BNB-locked products to stand a chance of winning these funds.
Mantra is also soaring because of the large market opportunity in the RWA tokenization industry. According to CryptoSlate, all crypto tokens in the RWA industry are now valued at over $48 billion. These include Mantra, Avalanche, Chainlink, Internet Computer, and Ondo.
Another data by DeFi Llama shows that the total value locked (TVL) in the RWA industry is over $8.4 billion. Examples of these tokens are the likes of Hashnote USYC, Usual, Tether Gold, and Ondo Finance. There are rising odds that the sector will continue doing well, benefiting Mantra.
Mantra has become a top player in the industry by building MantraChain, which it hopes will become the biggest layer-1 network for the tokenization industry. Therefore, the Mantra token will likely do well as the industry grows.
