Mantra price continues to consolidate over the past two months as the 2024 rally loses momentum.
Mantra (OM), a popular cryptocurrency in the real-world asset tokenization industry, is trading at $3.90. It remains 15% below its 2024 peak level.
According to technical analysis, Mantra has formed a similar chart pattern to Ripple (XRP), the industry's third-largest cryptocurrency.
The daily chart below shows that Mantra rose in November and then entered a consolidation phase, forming a symmetrical triangular pattern. This pattern is commonly referred to as a bullish pennant and is one of the most popular bullish continuation signals in technical analysis.
Therefore, the mantra can become parabolic as the two lines of the triangular pattern are nearing convergence. If this happens, the next target to look at will be the all-time high of $4.6265. A break above this level could lead to further gains to $5 and then to the Fibonacci extension limit of $7.42.
XRP price also formed a similar pattern
Mantra’s price movement is noteworthy as it closely resembles XRP’s similarly parabolic movement. Similar to OM, XRP experienced a sharp rally in November, reaching a yearly high of $2.90. It then entered a consolidation phase and formed a symmetrical triangle pattern before making a strong rebound this week and rising to a high of $3.40.
The price of XRP soared following media reports suggesting that the Securities and Exchange Commission is considering changing its approach to cryptocurrency regulation. According to reports, the SEC may also suspend some enforcement actions, which could benefit Ripple.
In another report, Donald Trump said he is open to creating a crypto reserve made up of US cryptocurrencies such as XRP and Cardano.
Potential Catalyst for Mantra Prices
Similar to XRP, Mantra also has some potential catalysts that could push its price significantly higher in the short term. First, it is one of the highest yielding coins in the crypto industry, with a yield of 5.79%. This staking yield is higher than Ethereum’s 3.13%.
Second, Mantra is a major player in the RWA industry, which analysts expect to attract trillions of dollars in assets over the next few years. Recently, Mantra partnered with DAMAC, a leading real estate company in the UAE. As part of the transaction, DAMAC will utilize Mantra's network to tokenize its real estate portfolio.
Mantra has also partnered with MAG, another leading real estate company in the Middle East, and is working on further collaborations. Additionally, Mantra's price is likely to rebound as it continues the strong rally experienced in 2024.
