Mantra enjoyed impressive gains over the past week, bringing it to a new all-time high while the broader crypto market slightly declined.
Mantra (OM) gained 137% in the last seven days and surged 43% over the past 24 hours alone. OM reached an ATH of $3.42 early Sunday and is trading at $3.34 at the time of writing.
The native token of the Mantra layer-1 blockchain secured the 38th spot among the leading cryptocurrencies with its $2.85 billion market cap.
Mantra’s partnership with the cloud computing giant Google Cloud in late October has been one of its major price drivers. The increased whale inflows on Nov. 14 also added to the bullish sentiment around the token.
However, some on-chain indicators hint at a potential correction.
Whale profit-taking
Following OM’s bull run to a new ATH, its whale accumulation seems to have slowed.
The asset’s large holder net inflow declined from 2.96 million OM on Nov. 14 to 1.8 million OM on Saturday as it surpassed the $2.50 mark, according to data provided by IntoTheBlock.
Moreover, the number of OM daily active addresses in profit rose from 27 on Nov. 13 to 297 unique wallets yesterday, per ITB data. Considering that 94% of the Mantra circulating supply is sitting in whale wallets, the start of profit-taking could potentially trigger a selloff.
In addition, over 24% of the Mantra addresses have been holding the asset for less than a month and 43% have accumulated the token less than a year ago, according to ITB.
This puts Mantra in a risky position as short-term traders, especially the 6% retail holders, will likely start taking profits before another major rally.
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