- MANTRA (OM) forms a bull flag after surging 100%, signaling potential continuation if resistance at $7.80 is breached.
- The $6.29 level now acts as support, reinforcing bullish momentum despite consolidation within a downward-sloping channel.
- Lower volume suggests consolidation, but a breakout above $7.80 could trigger another rally, supported by strong market sentiment.
MANTRA (OM) has captured traders’ attention after surging over 100% in the past month. The surge came after a $1 billion tokenization deal and increased whale activity. Now, a bull flag formation signals another possible breakout .
Bullish Continuation on the Horizon?
The OM/USDT 4-hour chart reveals a key resistance level near $6.29, where three breakout attempts failed. However, a strong bullish rally followed, pushing OM’s price to almost $8.00. Following the breakout, the asset moved into a consolidation phase inside a bull flag-like channel that sloped downward.
Source: CryptoBusy
Bull flags usually reinforce bullish momentum by indicating that the trend is continuing. Moreover, the MACD histogram shows decreasing bullish momentum, while the signal line nears the MACD line. Despite a correction, the RSI remains above 50, reflecting strong market sentiment. The $6.29 level now serves as support, increasing the chances of an upward move.
1-Hour Timeframe Signals Potential Move
A closer look at the 1-hour chart indicates OM is still within the early stages of a bull flag pattern. Price action reveals a descending channel, with strong support at $7.10 and resistance at $7.80.
Source: Alpha Crypto Signal
Trading volume has declined since the initial rally, suggesting lower buying pressure. The market structure still forms lower highs and lower lows , confirming consolidation. However, if OM breaks above resistance, a new bullish wave may follow.
What’s Next for OM?
If OM holds above $6.29 and breaks out of the bull flag, further gains could follow. Conversely, failure to maintain support may lead to further consolidation. However, indicators suggest the market favors a bullish breakout.
