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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.
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
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.