- Whale activity underlined strong interest, but unrealized losses raise uncertainty about OM’s near-term direction
- OM, at press time, was facing critical support at $6.10, with momentum building for a potential rebound
Over the last four days, 19 fresh wallets have withdrawn $61.52 million worth of Mantra [OM] tokens from Binance – Representing about 3.4% of the total supply. These large withdrawals, executed at an average price of $6.82, have resulted in an unrealized loss of $14.2 million or -3.39%.
At the time of writing, OM was trading at $6.52, following a decline of 5.31% over the last 24 hours. The aforementioned whale activity is a sign of significant interest in OM. And yet, the unrealized losses could allude to a level of uncertainty and risk for holders.
OM price action – Key levels and predictions
OM’s press time price action seemed to be showing signs of consolidation within a symmetrical triangle. The price was anchored around the $6.50 support – A level that has held steady in recent days. However, resistance remained at $7.16, preventing any significant upward movement on the charts.
A breakout above this resistance level could trigger a rally towards the $8-range. However, failure to hold support at $6.50 could push the price even lower. Therefore, these key levels will play a crucial role in determining OM’s next move.
Source: TradingView
OM’s address stats surge – What does this mean?
OM also recorded a surge in new addresses, indicating a noticeable hike in market interest. New addresses spiked by 159.49%, and active addresses increased by 58.09% – A sign that more participants are entering the market right now.
However, while these numbers suggest growing curiosity, the lack of a corresponding uptick in active addresses point to a potential gap in long-term engagement. Therefore, this surge could be more speculative than sustained, meaning it may not immediately lead to upward price momentum unless engagement solidifies.
Source: IntoTheBlock
Global in/out of the money – What’s happening behind the scenes?
A look at OM’s Global in/out of the money data revealed that 59.59% of addresses were profitable, with most holders “in the money” at press time. However, 31.72% of OM holders were “out of the money,” meaning a significant portion of investors have been experiencing losses.
This large proportion of holders sitting on losses could create volatility, as these individuals might look to exit or wait for a price recovery. Consequently, the price action in the short term will likely be influenced by the efforts of out-of-the-money holders to break even.
Source: IntoTheBlock
Besides, the Open Interest in OM dropped by 6.55%, alluding to a decline in market participation. Such a decline in Open Interest reflects waning trader confidence, especially as fewer participants are now betting on OM’s future price action.
This could also mean that traders are cautious due to recent price fluctuations and the prevailing market’s uncertainty. A sustained drop in Open Interest could mean that the market sentiment is leaning bearish across the board.
Conclusion
At press time, OM was definitely showing signs of growth, with strong whale activity and an increase in new addresses. However, it might hit the support level at $6.10 first, as it gains momentum before a rebound.
Provided the positive metrics continue, a potential price recovery could follow as OM pushes higher. The key will be whether it can hold support and build sufficient momentum to break through resistance levels in the coming days.
