OM price is currently facing a critical technical phase, with multiple indicators pointing to potential bearish pressure ahead. The DeFi token has declined by 13% over the past seven days, continuing its correction from the all-time high reached on November 18, with current prices down by 21% from that peak. Technical indicators paint a mixed picture, with RSI holding neutral territory while the Ichimoku Cloud suggests increasing bearish momentum. Adding to the uncertainty, a potential death cross formation looms on the horizon, which could accelerate the downward movement if confirmed.
The Relative Strength Index (RSI) for OM has maintained a relatively neutral position at 38.3 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 middle range between these thresholds, particularly around 40-60, typically indicates a neutral market state where neither buyers nor sellers have decisive control. With Mantra RSI currently at 38.3, the asset sits slightly below the neutral midpoint of 50, suggesting mild bearish pressure but not enough to indicate oversold conditions.
The Ichimoku Cloud chart for OM 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 dropped below the red line (Base Line), forming a bearish cross around December 19. The cloud formation itself has transitioned from green to red, indicating a shift from bullish to bearish sentiment. The price is currently trading below both the cloud and all major Ichimoku lines, suggesting strong downward momentum. However, as all lines are beginning to converge near the current price level, this could signal a potential consolidation phase or trend change ahead.
The short-term moving average for OM currently maintains its position above the long-term one, though with decreasing momentum that hints at a potential death cross formation. If this bearish signal materializes with the shorter MA crossing below the longer one, Mantra price could face increased selling pressure pushing it toward the $3.31 support level, with further downside to $3.03 if the first support fails. Alternatively, if OM price manages to regain bullish momentum before the death cross forms, the price could target the immediate resistance at $3.76. A successful breach of this level might pave the way for extended gains toward the $4.25 mark, though this scenario requires a clear shift in current market sentiment and maybe a new surge on the Real-World Assets (RWA) narrative.
In conclusion, Mantra (OM) price is currently at a critical juncture, with potential bearish pressure ahead as indicated by various technical indicators. The RSI remains neutral, suggesting a consolidation phase, while the Ichimoku Cloud paints a bearish picture with a potential death cross formation on the horizon. Traders should watch for a decisive move above 50 (bullish) or below 30 (bearish) on the RSI to signal a new direction. The $3.31 support level is crucial, with a potential death cross formation threatening further downside if confirmed. On the other hand, a bullish reversal could target resistance at $3.76 and beyond, contingent on a shift in market sentiment and potential macro influences on the Real-World Assets (RWA) narrative.
