Mantra Analysis: Price hits ATH but shows signs of weakness

The Mantra (OM) price has recently reached a new All-Time-High on November 18 and has increased by 155.29% in the past seven days. This strong upward momentum has pushed OM to its highest level ever.

However, recent indicators, including the RSI and Ichimoku Cloud, suggest that the uptrend may be weakening.

OM's RSI shows a neutral zone

The Relative Strength Index (RSI) of OM is currently at 52.7, down from the overbought level it reached from November 16 to November 18 when it was above 70. And the Mantra price reached a new ATH as the story of Real-World Asset (RWA) Token continues to develop. This decrease indicates a slowdown in buying momentum, suggesting that the previous strong upward pressure has eased. This change reflects a more balanced market, where buyers and sellers currently have a similar influence on the OM price.

The RSI measures the strength of price movements, with levels above 70 indicating strong upward momentum and potential overbought conditions, while values below 30 suggest strong downward pressure. At 52.7, OM's RSI is in the neutral range, indicating that the market is not too hot or too oversold.

Ichimoku Cloud suggests the uptrend is weakening

The Ichimoku Cloud chart for OM shows signs of weakening. The price has dropped below the Tenkan-sen (green line), signaling a loss of short-term momentum, and is now approaching the lower boundary of the green cloud (Kumo). A break below the cloud would mark a shift to a downtrend, as the cloud often acts as a crucial support area.

The green cloud ahead is still quite thick, indicating that although the overall trend may still have some support, this support is being challenged. If the OM price closes below the cloud, this could signal the potential for the recent uptrend to reverse into a prolonged downtrend.

OM Price Prediction: Could it drop below $3 in November?

If the downtrend in OM continues to strengthen, it could test the nearest support level at $2.98. If this level fails to hold, the price could decline further, potentially reaching a low of $1.81. This scenario would signal a deeper reversal and a significant loss of momentum.

On the other hand, if the uptrend recovers, the OM price could aim for new highs by testing the resistance area at $4.53. Overcoming this level could allow OM to surpass its previous peak and set a new ATH, confirming Mantra as one of the most important Token in the RWA ecosystem.

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