Mantra (OM) price joined other altcoins in a strong rebound as investors focused on the rising volume of assets in its ecosystem. The OM token rose to $0.8265 on Tuesday morning, its highest swing since June 14th. It has soared by over 30% from its lowest point in June, giving it a market cap of over $686 million.
Mantra assets are rising
Mantra is a top blockchain company that aims to bring the world's financial ecosystem on-chain. It aims to be a leader in Real-World Asset (RWA) tokenization, which is expected to be a multi-trillion-dollar industry.
Mantra has multiple features that make all this possible. It has OM staking, which rewards users for simply staking on the Mantra DEX. It also has vaults, which let users earn rewards on their stablecoins like the USD Coin. The other features are swaps, liquidity pools, and farms.
Third-party data confirms that Mantra's total value locked (TVL) has risen recently. It has surged to over $45.4 million, surpassing this year's low of less than $6 million. Although it's slightly below the year-to-date high of $60 million, this upward trend instills confidence in the growth of Mantra's ecosystem.
Mantra token has bounced back in line with the performance of Bitcoin and other altcoins. Bitcoin has rebounded to $63,000, triggering a solid rally in tokens like Mog Coin, Bonk, Quant, and Wormhole.
It is unclear whether these gains will hold because of the ongoing challenges in the crypto industry. For example, low volume and the lack of a major catalyst in the sector make it challenging.
One positive indicator for Mantra is the increasing open interest in the futures market. On Tuesday, it climbed to over $16 million from last year's low of $11.2 million, signaling robust activity within the ecosystem and providing reassurance about its health.
Mantra price forecast
The 2-hour chart shows that the OM token price has rebounded in the past few days. It has moved from last week’s low of $0.6297 to almost $0.85.
This rebound happened as the token formed an inverse head and shoulders (H&S) pattern, a popular bullish sign. It has risen above the 50-period moving average and the 61.8% Fibonacci Retracement point.
Therefore, because of the H&S pattern, the Mantra price will likely continue rising as buyers target the next point at $0.9182, which is its 38.2% retracement point. This means that the token could rise by almost 12% from the current level.
The alternative scenario is where the OM token retreats and retests the key support level at $0.7615, the neckline of the inverse H&S pattern.
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