Mantra (OM) Rally Fizzles: Key $8.40 Resistance Triggers Technical Sell Signal

• Renko charts display consecutive black bricks, confirming a strong uptrend that faces resistance at $8.40, which traders view as a reversal zone.
• The overbought stochastic RSI readings above 73 signal potential short-term corrections, as TD Sequential confirms sell signals in a market-top scenario.
• Maintaining support above $7.00 remains crucial; a breach could trigger deeper corrections toward $6.50 or lower, according to active technical analysis immediately.

Mantra (OM) appears to have reached a market top as technical signals on the Renko weekly chart and TD Sequential indicator point to a sell status. Recent price action and key resistance levels have raised concerns among traders.

Strong Uptrend and Key Resistance

Crypto veteran Ali_charts tweeted that Mantra OM may have hit a market top, with the Renko weekly chart signaling a sell status and the TD Sequential presenting a sell signal.

 The price reached $8.40 and then touched $8.69 before falling sharply to $7.48, marking a 12.02% decline. Traders see this move as a potential reversal indicator, where resistance may trigger a pullback.

The Renko chart shows consecutive black bricks that indicate a strong uptrend. Each brick represents a fixed price movement rather than a time interval. This pattern confirmed a steady bullish run until the price encountered resistance near the $8.40 level.

Overbought Conditions and Technical Signals

Stochastic RSI readings of 75.09 and 73.90 place OM in the overbought zone. Such levels typically precede a correction or a sideways move. Technical indicators now suggest that sellers could be gaining momentum amid this overextended condition.

The TD Sequential indicator further supports the sell signal on the chart. These technical tools combine to indicate that the asset might have peaked. Market participants now watch for a potential retracement if the price fails to sustain the upward move above resistance.

Market Scenarios and Support Levels

If OM maintains support above $7.00, buyers may push prices toward $8.69 or even $10.00. A strong trading volume and renewed momentum would support this bullish scenario. Analysts expect that sustained buying interest will be necessary to break key resistance levels.

Conversely, a breakdown below the $7.00 support level could trigger a deeper correction. In this bearish scenario, the price may test support levels at $6.50 or drop further to $5.00.According to Coin Gecko data, OM was trading at $7.48 at the time of writing, with a 1.39% gain over 24 hours and a slight 0.73% decline over the past week.