The Mantra price lost momentum in the past few weeks, stalling its path towards the resistance point at $10. OM, one of the best-performing cryptocurrencies in the last twelve months, was trading at $6.30 on Tuesday, down by 30% from the YTD high. Will the ecosystem fund launch lead to more gains, potentially to $10?
Mantra Price Wavers After the Ecosystem Fund Launch
Mantra, a top blockchain for the Real World Asset (RWA) tokenization industry, launched a major $108.8 million ecosystem fund to incentivize developers on the network. The developers hope that existing developers on the network will take advantage of the fund and accelerate their development.
Mantra also hopes that the fund will attract new developers in the crypto industry to its blockchain network. This fund will be deployed to companies over the next four years. Mantra will serve as either the principal investor or a minor participant alongside other top investors. Some of its partners include DAMAC, Three Point Capital, and Amber Group.
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Mantra has become a major player in the RWA industry with its MantraChain, a layer-1 network designed specifically for the sector. Its top features are its faster speeds, which can handle over 10,000 transactions per second, and low transaction costs.
Additionally, Mantra emphasizes regulatory compliance by incorporating features such as decentralized identity, AML, and Know Your Customer protocols. Also, MantraChain is built on top of the Cosmos SDK, which ensures interoperability through the Inter-Blockchain Communication (IBC) protocol.
Mantra is popular among investors for its staking features, offering a competitive yield of about 5.42%.
Mantra Price Technical Analysis
The daily chart shows that the OM price has remained in a tight range in the past few days. It dropped to a low of $5.7412 on Monday, a crucial support level that coincided with the 100-day Exponential Moving Average (EMA).
The Mantra price then formed a bullish engulfing pattern, a popular bullish reversal sign. It has now retested the tip of the symmetrical triangle pattern.
Given the substantial market volatility on Monday, the coin may rebound in the coming days. If this occurs, the initial target level will be $9.10, about 45% above the current level and the highest this year. A drop below the critical support level of $5.7 would invalidate the bullish Mantra price forecast.
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