Date: Thu, February 27, 2025 | 12:44 PM GMT
The cryptocurrency market remains in a corrective phase, with the downturn extending into February after the November rally lost momentum. However, the top RWA token, Mantra (OM), has outperformed the broader bearish trend, posting impressive gains of 58% and 92% over the last 30 and 60 days, respectively.
Source: Coinmarketcap
Now, OM is testing a crucial support level, mirroring a price structure similar to Sui (SUI), which recently faced a steep selloff after failing to hold a comparable support zone.
Mantra (OM) and Sui (SUI) – A Bearish Outlook?
Analyzing the daily charts of OM and SUI, both tokens have followed a strikingly similar trajectory. After facing rejection from the ascending resistance of their respective channels, OM is now testing the key support trendline at $7.30, coinciding with the 15-day moving average (15MA).
Image Fullscreen ExampleMeanwhile, SUI previously tested the same support trendline alongside the 50MA. However, it failed to hold, triggering a breakdown that resulted in a sharp 35% correction. If OM follows the same pattern, it could be at risk of further downside, potentially dropping to the next major support at $5.43.
The MACD indicator on the OM chart is showing signs of weakening momentum, similar to what occurred before SUI’s decline. A bearish crossover could confirm further downside risk.
On the other hand, if OM manages to hold this support and bounce, it could regain bullish momentum, with a potential retest of the resistance trendline of the channel. A successful breakout from the channel could reverse the bearish trend and reignite buying interest.
Final Thoughts – A Make-or-Break Moment for OM?
OM is at a crucial juncture, and the next few trading sessions will be key in determining its direction. If it can hold the current support, a strong upside move could follow. However, failure to do so may lead to a deeper correction, similar to SUI’s recent price action.
Investors should closely watch the support trendline and the reaction around the moving averages before making further trading decisions.
