OM, also known as Mantra, experienced a significant rally of over 10% on October 28, making it the top gainer of the day in the cryptocurrency market. This surge in price was attributed to a ‘god candle’ formation on the daily chart, propelling the token from $1.26 to $1.46. As a result, the token reached $1.40 over the past 24 hours, marking a 66% increase from its September low and pushing its market cap to $1.22 million.
One of the key drivers behind OM’s rally was the recent launch of the MANTRA Chain mainnet on October 23. This development allowed users to bridge OM tokens from other blockchains to the MANTRA Chain Mainnet, enabling them to stake their tokens to secure the network and earn staking rewards. The mainnet also offered a higher projected Annual Percentage Rate (APR) for staking compared to Ethereum, providing further incentive for users to migrate their tokens. Already, over 1 million OM tokens have been bridged since the mainnet’s debut.
The excitement surrounding an upcoming OM airdrop as part of the Mantra Zone competition has also fueled the recent rally. 50 million OM tokens are set to be airdropped to ATOM stakers on the MANTRA Chain mainnet, generating a lot of buzz in the altcoin community.
Technical analysis of the OM token shows a 43% rise in open interest on the futures market, reaching $44.66 million, indicating growing interest from short-term traders. Additionally, the weighted funding rate for OM has dropped into the red zone at -0.0534%, suggesting that short liquidations could potentially drive the price higher.
Analysts are optimistic about the future of OM, with some speculating that the token could retest its all-time high of $1.61 if trading volume continues to rise. However, there are concerns for holders as large holders have been moving their tokens to exchanges, potentially signaling a sell-off. With whales controlling 63% of OM’s supply and nearly 95% of holders currently in profit, there is a possibility of a selling scenario playing out.
Overall, while technical indicators suggest a positive trend for OM, investors should remain cautious and monitor market movements closely, especially in relation to Bitcoin, as its performance could impact the rally further.