Mantra Price Recovers Amid Decline in Exchange Balances

Mantra’s price bounced back this week, with a decline in exchange balances signaling potential gains.

Price Surge

Mantra (OM), a leader in Real World Asset (RWA) tokenization, rose to a high of $7 on Tuesday, nearly 20% up from its lowest level this month.

Key Catalyst

A significant reason for this increase is the continued reduction in centralized exchange balances this week. Data from Nansen indicates that OM tokens held on exchanges have dropped over 7% in the past seven days to 345.94 million, down from more than 372 million a week ago. The total supply of OM on exchanges has fallen nearly 3% to 38.92%.

Exchange Reserves

This decline in exchange reserves suggests that holders are choosing not to sell their tokens but are transferring them to self-custody wallets.

Futures Market Activity

Additionally, Mantra’s open interest in the futures market is on the rise. According to CoinGlass, open interest has climbed to over $356 million, increasing from a low of $319 million this month. Rising open interest often signals optimism among investors regarding the token’s future.

Ongoing Developments

Mantra’s price increase also follows ongoing investigations into malicious actors ahead of the GenDrop airdrop. This process allows active community members to receive OM allocations. Developers have removed 123,195 accounts, with 80,000 unallocated wallets.

Strong Performance

Since 2024, Mantra has emerged as one of the best-performing cryptocurrencies, with its price surging from near zero to almost $10. This rally indicates growing confidence in MantraChain, which developers have branded as the fastest and cheapest layer-1 network for RWA tokenization.

Regulatory Advancements

Mantra has obtained a license to operate an exchange in Dubai and secured a deal to tokenize assets worth over $1 billion for a significant real estate firm in the UAE.

Price Analysis

Current Trends

On the daily chart, OM’s price bottomed at $5.86 on March 10 and has rebounded to $6.90. The recovery was accompanied by a falling wedge pattern comprising two descending and converging trendlines, and a bullish pennant chart pattern was formed, indicating future upward momentum.

Support Levels

OM found support at the 100-day moving average, suggesting a strong potential for a rebound towards its all-time high of $9.12, approximately 32% higher than the current level. A breakthrough above that price could lead to further gains, possibly reaching the psychological level of $10.

Conclusion

Mantra also launched the RWAccelerator program to support RWA startups, potentially further boosting its market position.