Mantra price chart pattern points to a strong breakout soon

Mantra price has declined in recent days, entering a local bear market with a 30% drop from its all-time high.

Mantra (OM) token was trading at $3.54, bringing its market cap to over $3.28 billion. It has become the 45th biggest crypto in the industry.

Mantra’s recent decline pales in comparison to its strong performance this year, as it has jumped by 10,758%.

It has also become one of the best cryptocurrencies for yield-focused investors. According to StakingRewards, it has a yield of about 30%, making it one of the biggest yielders in the crypto industry.

The 30% yield means that a $1,000 investment in the coin will bring in about $300 a year, all factors constant. That is a higher reward than other popular cryptocurrencies like Ethereum (ETH) and Solana (SOL). It is also much higher than what US government bonds and popular dividend ETFs are offering.

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Mantra’s surge is because the developers are aiming to disrupt the Real World Asset tokenization industry, which has a multi-trillion dollar potential. They recently launched Mantra Chain, a layer-1 network made specifically for the tokenization industry.

Analysts believe that the RWA tokenization sector could be a game changer in the crypto industry. For example, tokenized funds by companies like Blackrock and Franklin Templeton have achieved almost $1 billion in assets.

According to Statista, assets worth over $30 trillion will be tokenized by 2030. Mantra hopes to be the blockchain used for this tokenization.

Mantra price could be ripe for a strong breakout

OM price chart | Source: crypto.news

Technicals suggest that the OM price could be on the cusp of a strong bullish breakout in the next few days. On the daily chart, the coin formed a golden cross pattern as the 50-day and 200-day Exponential Moving Averages.

Mantra coin has remained above these averages. Also, it has formed a bullish flag chart pattern, which is made up of a vertical line and a consolidation pattern. Most notably, it has formed a falling wedge pattern, a popular bullish reversal pattern.

A falling wedge is a pattern made up of two falling and converging trendlines. Therefore, with the wedge nearing its confluence pattern, there are signs that the Mantra price will have a strong bullish breakout.

If this happens, the next point to watch will be at $4.5150, its highest point last month, which is about 28% above the current level. A drop below the support at $3 will point to more downside.

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