OM, the native token of the real-world asset (RWA) Layer-1 blockchain Mantra, saw a substantial rally, surging over 30% in the last 24 hours. It hit a new all-time high of $4.52 on Monday before pulling back to $4.20, where it currently trades.

Despite the impressive surge, on-chain indicators point to signs that OM’s upward momentum could be slowing. Here’s why.

Mantra Traders Distribute For Profit

OM’s large holders’ netflow has declined over the past few days. According to IntoTheBlock’s data, it fell by 54% between November 14 and 17. This indicates reduced whale accumulation, which could exert downward pressure on the altcoin’s price.

Large holders are addresses that control more than 0.1% of an asset’s circulating supply. The netflow metric measures the difference between the amount these investors buy and sell over a specific timeframe.

A decline in netflow suggests that whale addresses are reducing their positions, a bearish indicator that may signal increased selling pressure and a heightened risk of a price drop.

Notably, this decline in large holders’ netflow has been accompanied by a spike in exchange supply, confirming the selloffs. According to Santiment’s data, OM’s supply on cryptocurrency exchanges has increased by 2% over the past three days. As of this writing, 134 million OM tokens valued above $553 million are held within wallets on exchanges.

When an asset experiences a spike in supply on exchanges, it indicates that more tokens are being moved from private wallets to exchange wallets. This suggests that investors may be preparing to sell, leading to increased selling pressure. Such a trend is typically bearish, as it can result in a potential price decline due to heightened supply on the market.

OM Price Prediction: Token Has Two Options

Currently, the RWA asset trades at $4.20. If profit-taking continues, the Mantra token could lose its recent gains, potentially dropping 15% to $3.56. Should bullish momentum weaken further at that level, it may fail to hold as strong support, potentially leading to a deeper decline toward $2.80.

Conversely, a resurgence in buying pressure could drive the token back to its all-time high of $4.52 and possibly beyond.

Bitcoin price is consolidating gains near the $90,000 zone. BTC is showing positive signs and might soon aim for a fresh increase above $92,000.

• Bitcoin started a fresh increase above the $90,000 zone.
• The price is trading above $90,000 and the 100 hourly Simple moving average.
• There is a key bullish trend line forming with support at $89,600 on the hourly chart of the BTC/USD pair (data feed from Kraken).
• The pair could gain bullish momentum if it clears the $92,600 resistance zone.

Bitcoin Price Aims Another ATH

Bitcoin price started a short-term downside correction below the $90,000 level. BTC traded below the $88,000 level before it found support.

A low was formed at $86,621 and the price is now recovering higher. There was a move above the $90,000 level. A high was formed at $92,607 and the price is now consolidating. It is trading near the 23.6% Fib retracement level of the upward move from the $86,621 swing low to the $92,607 high.

Bitcoin price is now trading above $90,000 and the 100 hourly Simple moving average. There is also a key bullish trend line forming with support at $89,600 on the hourly chart of the BTC/USD pair. The trend line is close to the 50% Fib retracement level of the upward move from the $86,621 swing low to the $92,607 high.

On the upside, the price could face resistance near the $92,000 level. The first key resistance is near the $92,500 level. A clear move above the $92,500 resistance might send the price higher. The next key resistance could be $93,200.

A close above the $93,200 resistance might initiate more gains. In the stated case, the price could rise and test the $95,000 resistance level. Any more gains might send the price toward the $98,000 resistance level.

Another Drop In BTC?

If Bitcoin fails to rise above the $92,000 resistance zone, it could start a downside correction. Immediate support on the downside is near the $90,000 level.

The first major support is near the $89,650 level. The next support is now near the $88,000 zone. Any more losses might send the price toward the $86,500 support in the near term.

Technical indicators:

Hourly MACD – The MACD is now losing pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now above the 50 level.

Major Support Levels – $89,650, followed by $88,000.

Major Resistance Levels – $92,000, and $92,500.

Bitcoin’s price rally appears to have stalled after a week of all-time highs (ATHs), with the cryptocurrency now facing significant challenges. 

The bullish momentum that propelled BTC to $93,242 has slowed, raising concerns about potential corrections as market conditions begin to shift.

Bitcoin Faces Potential Reversal

The NVT (Network Value to Transactions) Ratio, a critical metric for analyzing Bitcoin’s value, has spiked after recently hitting an eight-month low. A low NVT ratio typically indicates that the network’s transactional activity is aligned with its value, signaling a balanced and sustainable market.  

However, the current uptick suggests that Bitcoin’s network value may be outpacing its transaction activity. Historically, such scenarios have preceded corrections, highlighting the importance of closely monitoring this metric. If the trend persists, it could contribute to downward pressure on BTC’s price.

The Fear and Greed Index, a barometer for market sentiment, is now in the “extreme greed” zone, which has historically signaled potential reversals in Bitcoin’s price. Extreme greed often indicates that investors are overly optimistic, leaving the market vulnerable to sudden sell-offs.  

While Bitcoin has demonstrated resilience during similar conditions in the past, this heightened sentiment could mark a tipping point. Combined with declining transaction activity, BTC’s macro momentum may face increasing challenges in sustaining its current price levels.

BTC Price Prediction: Finding Support

Bitcoin is currently trading at $90,673, holding above the critical support of $88,691 while facing resistance at $92,000. If BTC consolidates within this range over the next few days, it could fend off a broader correction and maintain stability.

However, a break below the $88,691 support could trigger a decline toward $85,000. If this level fails to hold, Bitcoin risks falling further to $80,301, exacerbating bearish sentiment.  

Conversely, a bounce off $88,691 and a successful breach of the $92,000 resistance could revive bullish momentum. This would allow Bitcoin to aim for a new ATH above $93,242, effectively invalidating concerns of a reversal and reinforcing its long-term upward trajectory.