MANTRA (OM) Up 530% Since October – Correction or New Highs?

• Analysts warn of a TD Sequential sell signal after MANTRA (OM) surged 530% since October.
• Whale sell-offs have intensified, with large holders offloading millions in OM tokens.
• OM faces resistance at $7.50, with potential pullbacks to $6.50 if selling pressure persists.

MANTRA (OM) has been on an impressive run, soaring over 530% since October. Traders have been closely watching its rapid rise, wondering how long the momentum will last. On February 15, the token hit an all-time high of $7.95, fueled by increasing demand and institutional interest. However, market analysts have now issued a warning.  

In a recent post, analyst Ali highlighted that the TD Sequential indicator has flashed a sell signal on the three-day chart, suggesting a possible pullback ahead. Meanwhile, whale activity has intensified, with large holders offloading millions in tokens. As a result, OM’s price has dipped, raising questions about whether a correction is imminent or if the rally still has room to run.

Whale activity has played a major role in $OM’s price action. On-chain data shows that large holders reduced their balances significantly. The number of addresses holding between 100 million and 1 billion tokens dropped from 477 million to 272 million. This means whales have offloaded about $760 million worth of tokens, contributing to selling pressure.

Despite this sell-off, $OM remains one of the best-performing assets in early 2025. Year-to-date, the token has gained nearly 95% and its rapid ascent has drawn comparisons to its strong performance in 2024.

Further, data from IntoTheBlock analytical platform revealed that 97% of $OM holders are still in profit. However, resistance is forming between $7.40 and $7.52, where 285 addresses hold over 21 million tokens at a loss. Analysts suggest that if $OM attempts to break above $7.40, it could face strong selling pressure.

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Technical indicators suggest that $OM is overbought. The Bollinger Bands show high volatility, with the price touching the upper band at $7.50, signaling a possible pullback. If validated, the token may retrace to the 0.786 Fibonacci level at $6.65. If support fails at that level, $OM could dip further to $5.49. However, some analysts believe the correction might not happen if whales start accumulating again. If demand rises, $OM could push past $8.12 and potentially reach $10. 

Institutional adoption and increasing interest in real-world asset (RWA) tokenization could further fuel growth. For now, traders are watching key levels. If $OM stays above $7.50, another rally toward $9-$10 could follow. If it falls below the mark, a pullback to $6.50-$6.00 may occur before the next move. Also, market conditions and whale activity will likely determine $OM’s short-term direction.

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