Mantra (OM) has recently shown significant price activity, and traders are closely watching its movements for clues about its next direction. Despite strong whale interest and increased market engagement, OM faces some challenges in the short term.

Whale Activity and Market Sentiment

Over the past few days, OM has been experiencing notable whale activity, which suggests significant interest in the token. A group of 19 fresh wallets withdrew $61.52 million worth of OM from Binance. These large withdrawals represent about 3.4% of the total supply and were executed at an average price of $6.82, resulting in an unrealized loss of approximately $14.2 million, or -3.39%. At press time, OM was trading at $6.52, reflecting a 5.31% drop in the past 24 hours.

While whale activity typically signals strong market interest, the unrealized losses suggest a level of uncertainty for holders. This could point to potential risk, as whales are sitting on losses and may be hesitant to make further moves. Traders need to be aware of this tension, as it may affect short-term price action.

Price Action – Key Levels and Predictions

Looking at OM’s price action, the token appears to be consolidating within a symmetrical triangle pattern. The price is holding steady around the $6.50 support level, which has been a key level in recent days. However, resistance is evident at $7.16, preventing any significant upward movement.

If OM can break through the $7.16 resistance level, it could trigger a rally towards the $8-range. This would likely be a positive signal for traders, indicating strong bullish momentum. However, if OM fails to maintain support at $6.50, the price could decline further. A drop below this level could lead to additional downside, with the next support potentially around $6.10.

These key levels — $6.10 support and $7.16 resistance — will play a crucial role in determining OM’s next price move. Traders should watch for a breakout above resistance or a breakdown below support to gauge the token’s short-term direction.

Increased Market Participation – But with Caution

Mantra has seen a rise in new addresses, which suggests that there is growing market interest. New address activity surged by 159.49%, and active addresses increased by 58.09%, indicating that more participants are entering the market. While these numbers point to growing curiosity, the lack of a corresponding increase in active addresses suggests that this surge could be more speculative than sustained.

The uptick in new addresses is encouraging, but it will be important to see if this interest translates into long-term engagement. Without sustained participation, this spike in new addresses may not lead to a meaningful price increase.

Global In/Out of the Money and Open Interest

Examining OM’s Global In/Out of the Money (GIOM) data reveals that 59.59% of OM holders are currently “in the money,” meaning that most holders are profitable. However, a significant 31.72% of holders are “out of the money,” indicating that many investors are experiencing unrealized losses. This large proportion of underwater holders could create volatility, as some may look to exit their positions or wait for a price recovery.

Additionally, OM’s Open Interest has dropped by 6.55%, indicating a decline in market participation. This suggests that traders may be pulling back due to recent price fluctuations and the prevailing uncertainty in the market. If Open Interest continues to fall, it could signal a shift toward bearish sentiment, further pressuring OM’s price in the short term.

Conclusion

Mantra (OM) is showing signs of growth, with whale activity and an increase in new addresses. However, the token is at a critical juncture, with key support at $6.10 and resistance at $7.16. If OM can maintain support and break through resistance, a price recovery is possible. However, if it fails to hold these levels, further downside could be in store.

Traders should watch closely for a breakout or breakdown in the coming days, as these key levels will likely determine OM’s next move. Additionally, monitoring whale activity and market participation will be crucial in gauging the strength of any potential rebound. With the right momentum, OM could see a solid recovery, but caution remains necessary due to the current market uncertainties.