Crypto analyst Alex Clay’s latest chart analysis points toward a potential bullish breakout for Mantra (OM). He revealed on X that OM completed a bullish flag pattern on the charts and suggested that the asset might be positioned for upward momentum.
According to Clay, with price targets “remaining intact,” the market anticipates OM’s price breaking out of its current consolidation phase. This development aligns with positive sentiment in the community, as technical indicators reinforce the possibility of a substantial price move.
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Technical Analysis for Mantra (OM): Bullish Flag Pattern Signals Potential for Upside
In Clay’s analysis, the bullish flag pattern is a key element pointing toward further gains. This pattern, formed after an initial sharp rally, is typically a continuation signal where prices are expected to resume the upward trend.
The flag’s structure, defined by two parallel trend lines acting as resistance and support, indicates a consolidation period before a breakout. For OM, this breakout could occur if it surpasses the upper boundary, signaling a shift toward higher price levels.
The ongoing uptrend in Mantra (OM) is reinforced by the price staying above critical support zones, shown as shaded areas on the chart. These levels represent historical support where buying interest has previously emerged, providing a potential cushion if the price retraces before a breakout.
Key Resistance and Support Zones
The chart highlights several horizontal resistance lines above the current price, which are likely target points once a breakout occurs. Key resistance levels are seen above $1.15, with possible further targets near $1.50 and beyond. These levels could act as price checkpoints if OM experiences upward momentum, providing areas where traders may observe potential price reactions.
Conversely, support zones at lower levels provide stability, preventing sharp declines. These zones have previously held up during price drops, making them crucial points to watch should OM’s price face a temporary pullback.
Furthermore, a visual “ribbon” effect from multiple Exponential Moving Averages (EMAs) provides support for OM’s upward trend. Positioned below the current price, this EMA ribbon indicates that momentum remains in favor of the bulls. As long as the price holds above these EMAs, it suggests that the current trend is likely to continue, lending confidence to traders expecting further gains.
In case of a breakout, an increase in trading volume would be an essential confirmation, as higher volume often indicates sustained buying interest, supporting the strength of the breakout.
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Market Sentiment Reflects Optimism
Clay’s tweet accompanying the analysis emphasizes confidence in OM’s potential to reach its target levels, noting that the flag pattern is complete and indicating “time to break out.” This sentiment aligns with technical signals from the chart, where both the pattern and support from the EMA ribbon point toward possible price increases.
With these combined factors, OM’s price appears positioned for a breakout, attracting attention from traders and analysts who view the bullish flag as a sign of potential growth in the near term.
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