Mantra Price Soars to $9.10, but a Reversal May Be Imminent

The Mantra token has experienced a parabolic surge since 2024, emerging as one of the top-performing cryptocurrencies in the industry. Its price has skyrocketed from $0.0158 in January 2024 to $9.10, resulting in a market capitalization increase from $29 million to $8.45 billion.

Drivers of the Mantra Price Surge

The launch of MantraChain in 2024 has been a significant catalyst for the price surge. MantraChain aims to become the leading layer 1 network for the Real-World Asset (RWA) industry. Additionally, the introduction of RWAccelerator has provided funding opportunities for developers in the industry.

Mantra also owns MANTRA Zone, a gateway to the chain where users can complete on-chain missions and boost reward allocations. Regular airdrops have helped users increase their income, particularly with the OM price surging. Furthermore, Mantra’s staking rewards are higher than those of other networks like Ethereum and Near Protocol, with an average staking yield of 5.50%.

Reasons for a Potential Mantra Price Reversal

Several factors suggest that the Mantra price may reverse soon. Firstly, there is an ongoing divergence between Mantra and the futures open interest, indicating that investors in the futures market are reducing their bets on the coin.

Secondly, the concept of mean reversion suggests that an asset will return to its historical averages after deviating significantly from them. In this case, the 50-week moving average is at $2.65, and the 100-day average is at $1.64, hinting that the price may move back to these averages over time.

Thirdly, the Mantra price is still in the markup phase of the Wyckoff Method, which is typically followed by the distribution and markdown phases where the asset retreats.

Lastly, the Relative Strength Index (RSI) has reached an extreme overbought point at 87, while the Stochastic RSI is nearing the overbought level, indicating that the momentum may start waning.

What to Expect Next

Given these factors, there is a likelihood that the Mantra price may drop to the next key support level at $4.58, its highest swing on December 9.

About Mantra

Mantra was launched in 2020 by John Patrick Mullin, Will Corkin, and Rodrigo Quan Miranda. Initially, the project focused on community-driven governance and cross-chain interoperability as Mantra DAO. Since then, Mantra has expanded across multiple blockchain networks, including Ethereum and Binance Smart Chain, offering users opportunities to stake OM tokens, earn yield, and participate in lending and borrowing markets.

Recently, Mantra has shifted its focus toward regulated financial services, securing a Virtual Asset Service Provider (VASP) license in Abu Dhabi. This move positions Mantra as a leader in tokenizing real-world assets, bridging the gap between traditional finance (TradFi) and DeFi.

By integrating RWAs like real estate and financial instruments, Mantra is pioneering compliant and scalable blockchain solutions.

For more news on the cryptocurrency market, visit Global Crypto News.

Post Views: 0