Mantra's OM Token Drops 5% Amid Weakening Trend Signals

Mantra (OM) has experienced a 5% decline today, adding to its 20% drop over the past 30 days. Despite this recent correction, it remains the second-largest real-world asset (RWA) token in the market. The technical outlook for Mantra shows growing signs of weakness, with indicators suggesting that the current consolidation could shift into a downtrend. Key support levels are being tested, and a potential death cross is forming on the Exponential Moving Average (EMA) chart.

Mantra’s Average Directional Index (ADX) is currently at 22.96, down from 26.5 just a day ago. This drop signals a weakening trend. Readings below 20 generally suggest a weak or non-trending market, while values above 25 indicate a strong trend is forming or in progress. With OM’s ADX now slipping below the key 25 threshold, it suggests that the previous trend—a consolidation—may be losing strength. This drop aligns with early signs of a potential shift toward a downtrend, especially if selling pressure builds. If the ADX continues to fall while bearish momentum rises, it could confirm that Mantra is transitioning out of consolidation and into a downward phase.

Mantra’s Ichimoku Cloud chart currently shows a market in hesitation, with the price moving along the edge of the cloud. This positioning reflects a state of consolidation, where neither buyers nor sellers have full control. The Tenkan-sen (blue) and Kijun-sen (red) lines are flat and close together, a typical sign of weak momentum and sideways movement in the short term. This setup often precedes a breakout, but the direction remains uncertain until a clear move occurs. The future cloud is thin and has turned slightly bearish (red), indicating that support ahead is weak and could be easily broken if selling pressure increases. Additionally, the Chikou Span (lagging line) is entangled with recent price action, another indicator that OM lacks strong directional conviction. While the price hasn’t decisively broken below the cloud yet, any further downside could shift the bias toward a confirmed downtrend. For now, OM remains in a vulnerable position.

Mantra’s EMA lines are signaling potential weakness, with a possible death cross forming soon—a bearish pattern in which short-term moving averages cross below long-term ones. If this pattern is confirmed and downward pressure increases, OM could fall to test the support at $6.15. A break below that level may lead to a further drop toward $5.85, signaling a deeper correction phase in the absence of renewed bullish momentum. However, if sentiment around RWA coins picks up again, Mantra could see a trend reversal. In that case, OM might rally toward the $7.10 resistance level and, if broken, target $7.39 next. Should the uptrend mirror the strength seen in previous months, OM could even climb above $8 to test $8.16 for the first time since late February.