OM has experienced an impressive 70% rise in the past ten days, breaking out of a two-month-long consolidation phase. The altcoin recently posted a new all-time high (ATH) at $6.29, reflecting strong bullish momentum. 

However, some signs suggest that the continued rise might face challenges in the near future.

MANTRA Holders Are Booking Profits

The recent surge in OM’s price has been met with increased activity from long-term holders (LTHs). The “Age Consumed” metric has spiked, indicating that long-term holders are starting to sell their positions.

LTHs are often seen as an asset’s backbone, and selling them can signal a shift in market sentiment. As these investors book profits, it suggests that the rally may take a breather and that the price might face some resistance in the short term.

The fact that LTHs are cashing out could indicate that the current price level is considered attractive enough for these holders to secure their gains. While this behavior is typical in a strong uptrend, it also suggests that the rally may not be sustainable without renewed buying pressure from new investors or retail traders.

OM’s adoption rate, which tracks the percentage of new addresses making their first transaction, is not seeing a significant spike. This lack of momentum could indicate that the altcoin isn’t gaining as much traction in the market compared to other coins. A higher adoption rate usually signifies growing interest and confidence in an asset. Without it, OM may face difficulty sustaining its current price levels.

The relatively flat adoption rate suggests that the rally could be driven more by speculative trading than by fundamental growth. For a sustained upward movement, the altcoin would need to attract more long-term interest from new users and investors. The absence of a significant adoption spike may pose a challenge to OM’s long-term bullish outlook.

OM Price Prediction: Continuing The ATH Rally

OM’s price has surged by 70% over the last ten days, reaching $5.98. It recently formed a new ATH at $6.29, confirming the strong upward momentum. The price action indicates that OM has broken out of its consolidation phase and could see further gains, but potential resistance looms.

While continued growth is possible, the aforementioned factors suggest that sustaining the recent price increase may prove difficult. However, maintaining $6.00 as a support floor could keep the ATH rally intact, potentially pushing OM toward $7.00. If the market sentiment remains positive, the altcoin could continue its upward trajectory.

On the flip side, a reversal in market sentiment could lead OM to lose key support levels. If the price falls below $6.00, it could test the support at $4.27, and further declines might bring the price down to $3.47, invalidating the bullish thesis and erasing the recent gains.

Coinbase, the largest US-based crypto exchange, indicated the addition of Ether.fi (ETHFI) and Bittensor (TAO) to its listing roadmap.

ETHFI is a decentralized protocol token offering liquid staking and restaking solutions for Ethereum. Meanwhile, Bittensor’s TAO has multiple purposes within the ecosystem, acting as a utility token and a reward mechanism. 

Traders React to Coinbase Listing Announcement

Coinbase only supports two types of assets: native assets on their network and tokens that adhere to a supported token standard. Based on this standard, the exchange has added ETHFI and TAO to its listing roadmap.

The exchange posted the update on X (Twitter), suggesting that ETHFI and TAO meet its listing threshold. The US-based exchange also shared the contract addresses for the two tokens.

“Assets added to the roadmap today: Ether.fi (ETHFI), and Bittensor (TAO),” the post read.

Coinbase’s decision to add ETHFI and TAO to its listing roadmap follows what the exchange describes as a “thorough processes and standards evaluation for legal, compliance and technical security.” The criteria do not consider a project’s market cap or popularity.

After the Coinbase listing announcement, ETHFI and TAO token prices reacted, soaring by over 30% each before profit booking kicked in.

The surge was expected, coming off as a typical reaction of tokens following listing announcements on popular crypto exchanges. For instance, the Base token TOSHI recently skyrocketed by 70% when Coinbase added it to its listing roadmap. The same reaction happens following Binance exchange’s listing announcements.

Such reactions come amid the “buy-the-rumor, sell-the-event” situation and the expectation of increased liquidity. It is worth noting that Binance is the largest crypto exchange in terms of trading volume metrics. Meanwhile, Coinbase is the largest US-based crypto exchange. Given their high trading volumes and liquidity, it becomes easier for traders to buy and sell the tokens on these platforms.

Higher liquidity often leads to price appreciation, reducing price volatility and making it easier for traders to enter and exit positions. Other factors at play include increased accessibility, increasing demand, credibility, and trust.