MANTRA Token Rallies Over 10% Following Mainnet Launch

The MANTRA token surged by over 10% on October 28, reaching $1.40. This marks a significant 66% increase from its September low, driven by a substantial price movement from $1.26 to $1.46. Following this rally, MANTRA’s market capitalization rose to $1.22 million.

Key Factors Behind MANTRA’s Price Increase

One significant factor behind OM’s price rally is the recent launch of the MANTRA Chain mainnet, which went live on October 23. This launch allows users to bridge OM tokens from other blockchains to the MANTRA Chain Mainnet. Users can then stake these tokens to secure the network and earn staking rewards.

The MANTRA Mainnet offers a more attractive projected Annual Percentage Rate (APR) for staking compared to Ethereum, providing further incentives for users to migrate their tokens. Since the mainnet’s debut, over 1 million OM tokens have already been bridged.

Another catalyst for the recent rally is the upcoming OM airdrop. As part of the Mantra Zone competition, 50 million OM tokens will be airdropped to ATOM stakers on the MANTRA Chain mainnet, generating significant interest and chatter about the altcoin.

Increased Trading Volume and Market Interest

The daily trading volume for OM surged three-fold, surpassing $92 million, with most of the trading activity concentrated on Binance. CoinGlass data shows a 43% rise in open interest in the futures market for OM, reaching $44.66 million. This suggests growing interest from short-term traders. Additionally, OM’s weighted funding rate has dropped sharply into the red zone at -0.0534%, indicating that short liquidations could potentially drive the price higher.

Analyst Predictions and Technical Indicators

Analysts are optimistic about further upside for OM. Pseudo-anonymous trader CryptoBull_360 speculates that OM could retest its all-time high of $1.61 if trading volume continues to rise, suggesting a potential 13% gain from current price levels. Another market commentator, Altcoin Sherpa, remains bullish on OM but advises followers to monitor Bitcoin’s movement, which could significantly influence the rally.

On the daily chart, the Relative Strength Index (RSI), which had reached overbought territory on October 14, has since declined and stabilized at a neutral level of 50 as of October 28. This typically indicates that the chances of a short-term price correction are low. Additionally, the Average Directional Index (ADX), a key metric for gauging trend strength, has climbed to 32, suggesting that the trend has considerable strength.

Concerns for Token Holders

Despite the promising outlook for OM, there are concerns for holders. According to IntoTheBlock, the net inflow of large holders to exchanges surged from 112.4k OM tokens on October 20 to 6.21 million tokens, valued at $8.9 million. This indicates that whales are moving their tokens to exchanges, which often suggests they might be preparing to sell.

This is particularly concerning as whales control 63% of OM’s supply, and with nearly 95% of holders currently in profit, the likelihood of a selling scenario is plausible.

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