Cardano – Analyzing how THIS level could fuel a 14% ADA rally
- OM has surged by 98% in 30 days to hit a new ATH.
- Mantra saw strong bullish momentum as buyers dominated, positioning OM for further gains.
Over the past day, Mantra [OM] experienced a strong price upswing. In this period, the altcoin surged by 14.49% to hit a new all-time high of $7.96.
Since then, the altcoin has retraced, trading at $7.58 as of this writing. Also, OM saw a 35% rise in volume to $1.4 billion.
This price pump has extended to the weekly and monthly charts, rising by 25.57% and 98%, respectively. With such a massive upswing, what’s driving the rally, and will OM sustain these gains?
Why is Mantra rallying?
According to AMBCrypto’s analysis, OM was experiencing a strong upward momentum at press time, as demand soared.
Source: Coinglass
This demand is evidenced by the sudden spike in Mantra’s Open Interest. According to Coinglass data, OM’s Futures Open Interest has surged over the past day to hit a new all-time high of $640.6 million.
When Open Interest soars while prices are rising, it suggests that more capital is entering derivative markets, reflecting a strong conviction in the market direction.
As such, more positions are being opened in the direction of the momentum, confirming a strong uptrend.
Can OM sustain these gains?
As Mantra saw a strong rally, its price charts showed a growing upward momentum and bullish sentiment.
Source: TradingView
The bullishness was further evidenced by buyers, who continued to dominate the market at press time. Notably, the RSI spiked to hit 76 over the past day.
When RSI rises to such high levels, it suggests that buyers are in total control of the market. Often, a higher demand precedes a price rally.
Source: MobChart
The buyer dominance is also shown in the recent bullish crossover on order imbalance. A crossover here suggests that there are more buy orders than sell orders.
Such a surge reinforces our earlier observation that buyers have a strong upward momentum.
Source: Santiment
Importantly, Mantra’s active addresses have also been growing. Over the past week, active users have spiked to 8.9k, reflecting growing demand adoption.
Growth in active addresses is crucial for a sustained price, as it usually confirms a bullish price action.
In conclusion, Mantra is currently experiencing strong bullish momentum as buyers dominate the market. With strong positive sentiments, OM is well positioned for a sustained uptrend.
If this trend continues, OM will reclaim $7.9, breach the $8 resistance level and make another ATH. However, a correction here will see Mantra drop to $6.2.
