Mantra token holds above key support after dashboard upgrade
Mantra, the popular cryptocurrency for Real World Asset tokenization, bounced back on Tuesday, Sep. 3 after hitting a crucial support level.
Mantra (OM) token price rose by 10% as it retested the important resistance point at $1 for the first time since Aug. 25. It has jumped by 15% from its lowest point on Monday. The token rose after the developer unveiled a new version of Mantra Zone, a platform that lets users earn rewards and explore on-chain activities.
For example, users can invest in the Ondo Finance’s (ONDO) USDY liquidity pool and share part of the 888,888 OM that will be rewarded. Data shows that the pool has attracted over $2.19 million in assets. The pool has an estimated APR of 576%
Mantra token also rose as the network’s staking yield continued rising. According to StakingRewards, Mantra has one of the highest yields in the crypto industry. Its staking reward rose to 21.17%, its highest point since Aug. 23, after bottoming at 20.9% in August. Its staking ratio also rose to almost 50%
In contrast, Ethereum (ETH) has a staking yield of 3.05% and a staking ratio of 28.40%, while Solana (SOL) has a yield of 6.87% and a ratio of 65.54%.
Mantra price has found a strong support
Mantra’s rebound happened even as sentiment in the crypto industry remained weak. Bitcoin (BTC) has remained below $60,000 while the valuation of all coins retreated to $2.07 trillion.
Its recovery occurred after falling to $0.8675, an important support level that coincided with the ascending trendline connecting the lowest swings since June 25. It was also along the 100-day exponential moving average and the 38.2% Fibonacci Retracement point.
Therefore, Mantra will likely continue rising as investors target the key resistance level at $1.090, its 23.6% retracement point. Conversely, a drop below the ascending trendline will point to more downside as bears target the first pivot support at $0.70.
A potential risk for Mantra is that more traders are still shorting the token. According to CoinGlass, 50.75% of all traders are shorting the token, higher than Monday’s 49.9%. Its futures open interest of $17.7 million was also significantly lower than the July high of $37.4 million.
