Mantra (OM) stands out as one of many few tokens within the inexperienced amidst the widespread downturn within the crypto market. Nonetheless, its potential to take care of this upward trajectory seems restricted. This text delves into the elements behind Mantra’s latest surge and assesses its future motion.
Partnership with MAG
The first motive for Mantra’s latest efficiency is the numerous announcement made on July 3, the place UAE actual property big MAG partnered with Mantra to tokenize $500 million in actual property property. This announcement introduced a wave of constructive sentiment in the direction of Mantra, propelling its worth by 31% in simply eight hours. Regardless of this spike, such sudden will increase are normally unsustainable, as seen with Mantra already dropping greater than 18% in a bit over a day.
Market outlook and Bitcoin’s affect
To know Mantra’s potential motion within the coming days or even weeks, it’s essential to contemplate Bitcoin’s worth trajectory. Our latest evaluation suggests Bitcoin may drop to the $50,000-$52,000 vary. On the time of writing that article, Bitcoin was hovering round $57,000, and it’s now round $53,500.
If Bitcoin’s worth certainly drops to the expected vary, representing one other 3-7% downturn, it’s possible the complete crypto market will comply with. Historic information reveals that market actions typically align with Bitcoin. Due to this fact, buyers ought to keep away from lengthy positions on Mantra to forestall the danger of shopping for right into a declining market.
Technical evaluation: Fibonacci retracements and assist ranges
Analyzing Mantra utilizing Fibonacci retracements offers perception into its potential future actions.
- Brief-term evaluation: Mantra’s latest worth used the 78.6% Fibonacci retracement from the June 24 to July 5 vary as assist. This degree aligns with the macro 38.2% Fibonacci retracement from the low in December 2023 to the height in June 2024 and the 100-day shifting common on the every day timeframe. If Bitcoin holds its present ranges, Mantra could consolidate round $0.75
- Draw back danger: If the market declines additional, constructive information about Mantra will possible not be sufficient to maintain its worth. Mantra could drop to its historic assist ranges, aligning with macro Fibonacci retracements from December and February lows to the June peak, probably falling to the $0.652-$0.683 vary.
Strategic concerns
When assessing tokens that deviate from typical market actions, it’s important to guage the broader market context. Traders ought to contemplate the next:
- Information Impression: Decide if the information driving the token’s worth is important sufficient to counteract broader market tendencies.
- Market Absorption: Assess whether or not constructive information can take in market downturns or if the token will comply with the general market decline.
The technique includes shorting Mantra from its present worth level to the $0.652-$0.683 vary. This commerce is among the many riskiest, counting on the prediction that Bitcoin will drop additional. Bitcoin has already fallen considerably from $63,000 to $53,500, and whereas our prediction stands at $50,000-$52,000, this stays a high-risk commerce as a result of there’s a chance that the bears have stepped away and bulls are in cost now. One other problem is that if Mantra publicizes one thing extra within the coming days or even weeks, the worth will even go upward. Our case bets on two circumstances: primary, Bitcoin goes down additional, and quantity two, Mantra, has no extra bulletins.
In conclusion, shorting Mantra seems extra rewarding, given the present market circumstances and Bitcoin’s projected decline. Nonetheless, buyers ought to weigh the dangers fastidiously.
Disclosure: This text doesn’t symbolize funding recommendation. The content material and supplies featured on this web page are for instructional functions solely.
