Mantra Price Poised for a Major Breakout as Staking Yields Decline

The price of Mantra (OM) has recently experienced a significant surge, making it one of the best-performing cryptocurrencies despite broader market declines. After rising for three consecutive days, the token reached $4, slightly above the week’s lowest point, bringing its market cap to over $3.8 billion. This rally occurred amid a notable drop in staking yield, which fell by over 12% in the last 24 hours, now standing at 15.4%, according to StakingRewards. This decline in yield is despite a rise in the staking market cap by more than 5%, reaching $2.4 billion.

Despite the drop in yield, Mantra continues to offer some of the highest staking rewards in the crypto industry. For comparison, Polygon yields 5.6%, while Ethereum (ETH) and Solana (SOL) offer 3.2% and 6%, respectively. Staking involves delegating tokens to secure a network, and rewards are typically generated from the network’s transaction fees, distributed periodically.

Mantra’s high staking yield has been a major factor in its performance, with the token increasing by over 7,200% from its lowest point. Recently, the token saw an additional boost following the launch of MantraChain, a Layer-1 network designed to support Real World Asset (RWA) tokenization products. This new initiative is positioning MantraChain as a key player in the fast-growing tokenization sector, which has seen significant growth, with projects like Ondo Finance (ONDO) and BlackRock’s BUIDL collectively managing billions in assets.

Mantra’s price appears to be setting up for another significant move. The daily chart shows a consolidation phase following its sharp rally in November, forming a bullish pennant pattern, a continuation signal commonly associated with strong price breakouts. This pattern consists of a sharp vertical price move followed by a symmetrical triangle. As the triangle approaches its apex, assets often experience a breakout in the direction of the initial movement.

If the bullish pennant holds, the price could rise to its year-to-date high of $4.5. A breakout above this level may open the door for further gains, potentially pushing the price to the next psychological resistance level of $5. However, should the price fall below the support level at $3.5, the bullish outlook would be invalidated, and a downward trend could be expected.

Overall, despite the decline in staking yield, Mantra’s growth potential remains strong, driven by its high staking rewards and the promising developments within its ecosystem, particularly with MantraChain.