Amid a sluggish crypto market, Mantra (OM) has drawn attention with significant accumulation, hinting at a potential major move.
Massive Accumulation Detected
According to SpotOnChain, a major accumulation event has occurred over the past four days. New 19 wallets, potentially belonging to a single entity, withdrew 61.52 million OM tokens, representing 3.4% of the total supply, at an average purchase price of $6.82, totaling $420 million. Despite this, the entity currently holds an unrealized loss of $14.2 million, reflecting a 3.39% price decline.
Double Bottom Formation?
The technical chart of OM suggests that a classic double bottom pattern may be forming—a structure often associated with bullish reversals. If the price successfully holds at the $6 support level and reverses upward, it could confirm the pattern, leading to a breakout above the neckline at $7.06. However, if the $6 support zone fails, the likelihood of further downside increases.
Final Thoughts
OM is at a crucial phase where accumulation data and technical indicators suggest a potential bullish reversal. The fate of OM will depend on large buyers' activities and support levels. Broader market factors, including Bitcoin’s and Ethereum’s price actions, will crucially affect sustaining or worsening current trends.
The upcoming days will be pivotal in determining whether OM can establish an uptrend or if bears will regain control.
