MANTRA (OM) Price Surges 25% After Breaking Descending Wedge Pattern

MANTRA (OM) price experienced a significant surge, spiking over 25% after breaking out of a descending wedge pattern, briefly reaching $0.493. This bullish momentum was retested as the price stabilized above the key support level of $0.421. Technical indicators suggest rising volatility for OM, with traders closely monitoring for a continuation or rejection of the breakout.

Following a steep multi-week decline, OM's price on May 21 surged from below $0.39 to a high of $0.493, before profit-taking trimmed the gains. The OM/USDT pair is now holding just above the 61.8% Fibonacci level, indicating that bulls may attempt to consolidate the recovery. However, overhead resistance and fading intraday momentum are clouding the near-term outlook.

OM's recent price behavior marks a sharp departure from its prior range-bound structure. After weeks of compression, a breakout above the $0.40 resistance zone triggered a large bullish candle on the 4-hour chart. This breakout also coincided with a clean breach of a descending wedge pattern, which had contained price action since mid-April. The spike stalled just under the Fib 1.0 extension level at $0.463, with candles failing to close above it. Price is now retracing toward the 61.8% retracement level near $0.421, a zone that may act as near-term support.

The Exponential Moving Averages (EMAs) on the 4-hour chart are flipping bullish, with the price trading above the 20-EMA ($0.398) and 50-EMA ($0.400), while the 100-EMA and 200-EMA remain lagging above. Bollinger Bands are expanding following the breakout, with the price hugging the upper band—typically a sign of elevated OM price volatility and an impending decision point.

Momentum indicators are showing early signs of hesitation following the breakout. On the 30-minute chart, the Relative Strength Index (RSI) cooled from a high of 75 to around 57, signaling that the earlier overbought conditions are easing. This could either set the stage for another leg higher if the RSI remains above 50 or indicate exhaustion if bulls fail to hold $0.42. The Moving Average Convergence Divergence (MACD) histogram on the same timeframe shows a mild bearish crossover, though it’s still holding above the zero line. This suggests that while bullish pressure is softening, a complete trend reversal hasn’t yet been confirmed. On the 4-hour timeframe, MACD remains positive, and RSI is slightly elevated at 58—still supportive of an upward structure as long as the price stays above the $0.420–$0.425 cluster.

The pullback in MANTRA (OM) price can largely be attributed to overhead supply near $0.49, which acted as a rejection zone during previous spikes in late April. As seen in the daily structure, this area lies just beneath the broader descending resistance trendline stretching from March highs. Moreover, volume during the surge failed to sustain its initial burst. After the vertical rally candle, subsequent bars showed declining participation—often an early sign that the move is fading. This suggests that unless fresh buying interest emerges above $0.45, the price may remain vulnerable to a deeper retracement. Additionally, MANTRA (OM) is still trading within a wide range capped by long-term resistance near $0.492 and broader structural support between $0.35 and $0.38. The current price action appears to be testing the upper third of this consolidation band.

As long as MANTRA (OM) price remains above the $0.421–$0.426 zone, bulls may retain an edge heading into May 22. This range coincides with the 0.618 Fib level, EMA20, and the top of the prior wedge breakout zone. Holding this support would keep the possibility of another test of $0.463 and $0.492 alive. However, if the price falls below $0.420 on volume, MANTRA (OM) may slide toward the $0.402–$0.387 region. This area includes the 0.382 Fib and the 100-EMA and will act as the next cushion for buyers. Given the expanding Bollinger Bands and triangle breakout, MANTRA (OM) price action is likely to remain volatile over the next 24 hours. Traders should watch for volume confirmation on either side of the $0.44–$0.42 channel to determine breakout continuation or rejection.