OM surged nearly 200% in 7 days—Is the RWA concept about to take off?

2024-11-18, 08:00

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According to Gate.io market data, the current price of the Mantra token (OM) is $4.2, with a 24-hour increase of 25% and a 7-day increase of 194%, making it the best-performing token in the entire <a  rel="nofollow noopener noreferrer"  href="/price" target="_blank" class="blog_inner_link">cryptocurrency market</a>. OM's current circulating market capitalization is $3.6 billion, ranking 36th in the overall market.
According to the official introduction, Mantra aims to become the first RWA (Real-World Asset) Layer 1 blockchain capable of complying with and enforcing real-world regulatory requirements. In October of this year, Mantra announced on platform X that the Mantra Chain mainnet was officially launched to promote the on-chain integration of real-world assets. Essentially, OM token's price began to rise after the launch of Mantra Chain.
OM is the native cryptocurrency of the Mantra OMniverse ecosystem, issued by Mantra DAO, which aims to provide various decentralized finance (DeFi) services. Mantra DAO is a decentralized autonomous organization that offers users various DeFi services and governance opportunities.
Additionally, recent reports indicate that Mantra has partnered with UAE real estate giant MAG to tokenize $500 million in real estate assets, marking the largest collaboration in the RWA field to date. Furthermore, UAE’s regulated Zand Bank has been reported to be working with Mantra on real estate tokenization. These significant partnerships demonstrate Mantra's leading position in the RWA space, which could be one of the reasons for OM's short-term strong performance.
Two Main Uses of OM:
1. Staking OM Tokens: Users can stake OM tokens to participate in various DeFi activities on the Mantra platform, such as lending and earning rewards. By staking OM, users gain access to a range of financial tools and services on the platform, along with related economic incentives.
2. Governance Rights: OM token holders have voting rights on proposals affecting the future development of Mantra. This allows users holding OM to participate in the platform's governance process, voting on proposals and contributing to the platform’s development direction.
![](https://gimg2.gateimg.com/image/article/1731916960om.png)
## OM Market Data  
- Current Price: 4.2395 USDT  
- 24-Hour Increase: 27.74%  
- 24-Hour High: 4.53948 USDT  
- 24-Hour Low: 3.17507 USDT  
- Net Inflow: 12,806,252 USDT  
- Fear & Greed Index: 80 (Extreme Greed)  
- Support Level: 3.34126 USDT  
- Resistance Level: 4.69629 USDT  
- KDJ: Current value is 85.60, down from 88.52 an hour ago, indicating an overbought condition.  
- RSI: Current value is 83.88, down from 88.85 an hour ago, suggesting the market may be overheating.  
- MACD: The current MACD line is above the signal line, indicating an upward trend.
OM is performing strongly, with its current price at a high level. However, technical indicators suggest an overbought condition. Although there is solid capital inflow, extreme greed in market sentiment may lead to a short-term correction.
## Trading Strategy Suggestions
### Strategy 1: Short-Term Pullback - Short Position  
- Direction: Short  
- Entry Price: 4.20 USDT (around current price)  
- Stop Loss: 4.55 USDT (above resistance level)  
- Target Price: 3.50 USDT (near support level)  
- Reason: The market is in a state of extreme greed, and technical indicators show overbought signals. A short-term pullback is likely. Enter a short position near the current price, with a stop loss above the resistance level to prevent unexpected rebounds.  
### Strategy 2: Breakout - Long Position  
- Direction: Long  
- Entry Price: 4.70 USDT (after breaking through resistance)  
- Stop Loss: 4.50 USDT (below new support level)  
- Target Price: 5.00 USDT (psychological level)  
- Reason: If OM breaks through the 4.69629 USDT resistance level, it could trigger further upside momentum. Enter a long position after a breakout, with a stop loss set below the new support level to protect capital.  
## Outlook  
OM is well-positioned in the "compliance" and "Real-World Assets (RWA)" tracks, gaining significant attention from traditional financial institutions. Mantra Chain supports the digitization of real-world assets, meeting demands for compliance and transparency. As more traditional assets enter blockchain space, OM is expected to see increased market demand due to its potential for market speculation.
<div class="blog-details-info">
<div>Author: **Icing**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions. Investment involves risks and users need to make careful decisions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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