Mantra’s ATH: A Cautionary Tale for Retail Traders – Expert Analysis and Predictions
Mantra, the native token of the Mantra layer-1 blockchain, has been on an impressive run, reaching an all-time high of $3.42 early Sunday. This surge has been fueled by its partnership with Google Cloud and increased whale inflows. However, as the token’s price continues to skyrocket, retail traders should exercise caution.
On-Chain Indicators Hint at a Potential Correction
According to data from IntoTheBlock, the large holder net inflow declined from 2.96 million OM on Nov. 14 to 1.8 million OM on Saturday as it surpassed the $2.50 mark. Furthermore, the number of OM daily active addresses in profit rose from 27 on Nov. 13 to 297 unique wallets yesterday.
Considering that 94% of the Mantra circulating supply is sitting in whale wallets, the start of profit-taking could potentially trigger a selloff. Moreover, over 24% of the Mantra addresses have been holding the asset for less than a month and 43% have accumulated the token less than a year ago.
Risk of Short-Term Traders Taking Profits
This puts Mantra in a risky position as short-term traders, especially the 6% retail holders, will likely start taking profits before another major rally. As the token’s price continues to rise, the risk of a sharp correction increases.
Expert Analysis and Predictions
Based on the on-chain indicators and market trends, I predict that Mantra’s price may experience a short-term correction in the coming days. Retail traders should be cautious and consider taking profits or adjusting their positions accordingly.
In the long term, Mantra’s partnership with Google Cloud and its growing adoption could continue to drive the token’s price higher. However, the market is known for its unpredictability, and traders should always prioritize risk management.
Conclusion
Mantra’s ATH is a testament to the token’s growing popularity and adoption. However, retail traders should be cautious and aware of the potential risks associated with the token’s price. By staying informed and adapting to market trends, traders can navigate the volatile world of cryptocurrency and make informed decisions.
