Mantra (OM) price is entering a key technical phase as many indicators suggest that downward pressure may appear. This DeFi token is down 13% over the past seven days, continuing its correction from the record high reached on November 18, with the current price down 21% from that peak.
Technical indicators paint a mixed picture, with the RSI remaining neutral while the Ichimoku Cloud shows increasing bearish momentum. Adding to the uncertainty is the possibility of a possible ‘death cross’ forming, which could spur price declines if confirmed.
OM RSI Has Been Neutral Since December 3
OM’s Relative Strength Index (RSI) has maintained a neutral position at 38.3, showing minimal volatility since December 3. RSI is a momentum oscillator that ranges from 0 to 100 , with readings below 30 indicating oversold conditions and above 70 suggesting overbought levels.
The area between these two thresholds, especially around 40-60, often indicates a neutral market state where neither buyers nor sellers control the decision.
With Mantra’s RSI currently at 38.3, the asset is below the neutral point of 50, indicating slight bearish pressure but not enough to indicate oversold conditions. This prolonged period of neutral RSI could signal a phase of accumulation, with the possibility of a directional move as the indicator breaks above 50 (bullish) or below 30 (bearish).
Current reading suggests that traders may be waiting for a stronger signal before making significant moves, although the slight bearish bias at 38.3 calls attention to potential downside risks. downward trend.
Ichimoku Cloud Shows Discount Scene For OM
OM’s Ichimoku Cloud chart shows a bearish trend developing over the past week.
The green line (Chikou Span) has crossed below the price action, while the blue line (Conversion Line) has fallen below the red line (Base Line), forming a bearish crossover around day 19. December.
The cloud formation itself has turned from green to red, signifying a transition from bullish to bearish sentiment. The price is currently trading below both the clouds and all the major Ichimoku lines, indicating a strong downtrend.
However, when all the lines begin to converge near the current price, this could signal a possible accumulation phase or trend change.
OM Price Prediction: $3.31 Support Is Key
The short-term moving average for OM currently maintains a position above the long-term average, however the decreasing momentum indicates the possibility of a ‘death cross’ formation.
If this bearish signal emerges with the shorter MA cutting below the longer MA, Mantra price could face increased selling pressure pushing it towards the $3.31 support level, with a further drop to $3.00 possible. .03 USD if first support fails to hold.
Conversely, if OM price can regain upward momentum before forming a death cross, the price could reach immediate resistance at $3.76.
A successful break above this level could pave the way for extended gains towards the $4.25 mark, although this scenario would require a clear change in current market sentiment and possibly a rally new on Real Assets (RWA) story.
