Mantra (OM) price is currently facing a critical technical phase as indicators point towards potential bearish pressure ahead. The DeFi token has seen a 13% decline over the past seven days, continuing its correction from the all-time high reached on November 18. Current prices are down 21% from that peak, indicating a significant pullback in the price.
The Relative Strength Index (RSI) for OM has been hovering around neutral territory at 38.3 since December 3. This indicates minimal volatility in the market, with neither buyers nor sellers having decisive control. While the RSI is slightly below the neutral midpoint of 50, it does not suggest oversold conditions. This prolonged period of neutral RSI readings could indicate a consolidation phase, with the potential for a directional move once the indicator breaks decisively above 50 (bullish) or below 30 (bearish).
The Ichimoku Cloud chart for OM is showing a bearish trend developing, with the green line (Chikou Span) crossing below the price action and the blue line (Conversion Line) dropping below the red line (Base Line) around December 19. The cloud formation has transitioned from green to red, signaling a shift from bullish to bearish sentiment. The price is currently trading below both the cloud and all major Ichimoku lines, indicating strong downward momentum.
In terms of price prediction, the $3.31 support level is crucial for OM. The short-term moving average is currently above the long-term one, but with decreasing momentum that hints at a potential death cross formation. If the shorter MA crosses below the longer one, Mantra price could face increased selling pressure towards the $3.31 support level, with further downside to $3.03 if the first support fails. However, if the price regains bullish momentum before the death cross forms, it could target the immediate resistance at $3.76, with potential gains towards $4.25.
In conclusion, Mantra (OM) price is currently in a critical technical phase with indications of potential bearish pressure ahead. The RSI and Ichimoku Cloud suggest a bearish trend developing, with key support and resistance levels to watch. Traders should be mindful of the potential downside risks and monitor the market closely for any significant movements. As always, it is important to conduct thorough research and consult with a professional before making any financial decisions in the volatile cryptocurrency market.
