After suffering a historic price collapse, Mantra’s OM is making a remarkable comeback. The altcoin plunged over 90% on April 13, falling from $6.30 to under $0.50 in hours.
However, it has bounced back with a 25% gain over the past 24 hours. OM is currently the market’s top gainer and is poised to extend its gains in the short term.
OM Leads Market Gains With a 25% Jump
The sudden resurgence in investor interest in OM comes after an April 15 X post from Mantra CEO John Patrick Mullin, announcing plans to burn the team’s token allocation.
While plans for the token burn are still being finalized, Mullin’s announcement has calmed market fears and revived bullish sentiment among some traders. This renewed confidence has prompted increased OM accumulation, driving the token’s price up by over 25% in the past 24 hours.
Key on-chain and market metrics support the rebound narrative. For example, the token’s open interest has risen sharply by 9%, indicating a surge in fresh capital entering OM positions in the past 24 hours.
As of this writing, this stands at $156.74 million. When an asset’s open interest climbs alongside its price like this, it signals that new money is entering the market and that traders are opening fresh positions in the direction of the uptrend.
Moreover, OM’s long/short ratio confirms this. As of this writing, it is currently at 1.02, highlighting the preference for long positions among futures traders.
An asset’s long/short ratio measures the proportion of its long positions to short ones in the market.
A ratio above one like this means there are more positions betting on a sustained OM price rally than those opened in favor of a decline.
Next Stop $2.64 or Back to January’s $0.09 Lows?
At press time, OM trades at $0.78, climbing 29% from April 13’s low of $0.50. With the gradual uptick in its buying pressure, the altcoin could maintain its current rally to trade at $2.64.
However, if the bears regain market control and increase the downward pressure on OM, it could extend its decline and fall to $0.09, a low it last reached in January 2024.
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