Mantra (OM) made headlines by reaching a new all-time high (ATH) of $6.48 on February 6, 2025, after a remarkable 53% surge in the past month. This achievement came on the back of a phenomenal 1800% increase over the past year, largely driven by the growing excitement around Real World Asset (RWA) projects. However, after hitting this milestone, OM faced a round of profit-taking, causing the price to retreat slightly. With the broader market still in a slump, many traders are now watching closely to see whether OM can continue its bullish trajectory or if further consolidation is in store.

Can OM Push for Another ATH?

After testing its ATH, OM found resistance near the $6.48 level and pulled back. This type of correction is common after a significant rally, and it doesn’t necessarily signal a reversal. In fact, the long-term bullish structure for OM remains intact, provided the price stays above key support levels. The 50-day Exponential Moving Average (EMA), which has historically served as a reliable cushion during price dips, currently sits near the $4.6 level. As long as OM stays above this support, the uptrend remains valid.

If OM bounces off the $4.6-$4.7 range, it could set the stage for another push toward its previous ATH of $6.48. However, should the price break below this critical support zone, a deeper correction could be in the cards, with the next support level near $4.30. The Relative Strength Index (RSI), currently at 59, also suggests there’s some room for further downside if bearish momentum continues. A quick recovery above the 60-65 RSI range, however, could trigger renewed buying interest, possibly leading to another test of higher price levels.

Traders Remain Cautiously Optimistic

Despite the recent dip, there’s still a sense of cautious optimism in the market. Trading volume surged by nearly 60%, reaching $361.3M, indicating a renewed interest in OM, particularly in its Futures market. However, Open Interest decreased by 3%, falling to $429M, signaling that some traders closed their positions after OM reached its ATH. The overall long/short ratio remains slightly bullish at 1.05, but on Binance, more traders have been betting against OM, with short positions dominating at a 0.54 ratio. This dynamic points to short-term volatility, as moderate liquidations on both long and short sides suggest increased uncertainty.

In addition to OM’s price action, broader market trends and Bitcoin’s movements will play a crucial role in shaping the altcoin’s near-term outlook. While the fundamentals for OM remain strong, driven by the growing interest in RWAs, traders should keep a close eye on how the market develops. The key to OM’s next move lies in whether the bulls can defend the 50-day EMA support level or if profit-taking and broader market conditions will lead to deeper corrections.

In Conclusion

While OM’s recent ATH marked a significant milestone, the altcoin is currently undergoing a period of consolidation. As long as the price stays above the 50-day EMA support at $4.6, there’s still a strong possibility of another attempt at the ATH. However, traders should remain cautious, as profit-taking and overall market volatility could lead to a deeper correction if key support levels are breached. With renewed interest in OM, the coming weeks could be pivotal in determining whether the altcoin can sustain its upward momentum or enter a more prolonged period of consolidation.