- Whales bought 20 million OM, signaling confidence but raising market uncertainty.
- Liquidations surged, with long positions suffering major losses, hinting at cautious sentiment.
- OM broke key support, with $6.21 and $4.42 as critical downside levels.
Big-money investors have rushed into the Mantra’s OM market, buying 20 million tokens in four days. This massive purchase, worth $143.1 million, has sparked speculation. Despite this surge, OM dropped 7.90% in 24 hours, trading at $6.89. Large holders often influence price movements, but traders remain cautious. Will this buying spree push OM higher, or is another drop on the way?
Whale Buying Sparks Mixed Market Reactions
A Binance hot wallet played a key role in this accumulation. The position now shows a floating loss of $4.7 million. Large purchases often signal confidence, but market sentiment remains uncertain. Some traders see this as a bullish sign, while others hesitate to follow. OM’s Liquidation data adds to the uncertainty. Total liquidations reached $338.22K, mostly from long positions. Meanwhile, short liquidations totaled just $10.07K. Many traders closed bullish positions, signaling doubt about future price action.
On-chain Data and Technical Levels to Watch
OM’s On-chain data shows both strength and weakness. Network growth reached 1.50%, pointing to increased user activity. Large transactions made up 0.46% of all transfers, suggesting continued interest. However, the “In the Money” metric dropped 6.37%, meaning more holders now face losses.
Despite this, OM remains well-distributed, with only 0.13% concentrated in large wallets. OM recently broke below a rising wedge pattern, a bearish signal. The price struggled to hold above $7, showing signs of weakness. If selling pressure continues, support at $6.21 could come into play. A deeper decline may target the $4.42 level.
Whales continue accumulating, showing confidence in long-term growth. A strong move above resistance could shift momentum, drawing fresh buyers. Traders now watch key levels closely. Will support hold, or is another drop coming? The market will soon reveal the answer.
