Mantra – a beacon of hope in a declining market?
The post Mantra – a beacon of hope in a declining market? appeared on BitcoinEthereumNews.com.
Mantra (OM) stands out as one of the few tokens in the green amidst the widespread downturn in the crypto market. However, its potential to maintain this upward trajectory appears limited. This article delves into the factors behind Mantra’s recent surge and assesses its future movement. Partnership with MAG The primary reason for Mantra’s recent performance is the significant announcement made on July 3, where UAE real estate giant MAG partnered with Mantra to tokenize $500 million in real estate assets. This announcement brought a wave of positive sentiment towards Mantra, propelling its price by 31% in just eight hours. Despite this spike, such sudden increases are usually unsustainable, as seen with Mantra already dropping more than 18% in a bit over a day. Market outlook and Bitcoin’s influence To understand Mantra’s potential movement in the coming days or weeks, it is crucial to consider Bitcoin’s price trajectory. Our recent analysis suggests Bitcoin might drop to the $50,000-$52,000 range. At the time of writing that article, Bitcoin was hovering around $57,000, and it is now around $53,500. If Bitcoin’s price indeed drops to the predicted range, representing another 3-7% downturn, it is likely the entire crypto market will follow. Historical data shows that market movements often align with Bitcoin. Therefore, investors should avoid long positions on Mantra to prevent the risk of buying into a declining market. Technical analysis: Fibonacci retracements and support levels Analyzing Mantra using Fibonacci retracements provides insight into its potential future movements. Short-term analysis: Mantra’s recent price used the 78.6% Fibonacci retracement from the June 24 to July 5 range as support. This level aligns with the macro 38.2% Fibonacci retracement from the low in December 2023 to the peak in June 2024 and the 100-day moving average on the daily timeframe. If Bitcoin holds its…
Filed under: News - @ July 6, 2024 7:26 pm