- OM’s price has increased by 57.85% in the past month
- The new address creation percentage of Mantra has fallen by 99.7% in the last 3 months
Mantra’s address creation percentage is falling
Source: X
Although Mantra has recently seen continuing growth on his price charts, its acceptance rate has decreased.
According to Ali MartinezThe Mantra network has been considerably contracted, with new address creation falling by 99.7%. As such, new addresses are made from 110.517 in November to 252. This purchase of new address creation is a sign that fewer new users join the network-a sign of decreasing interest, demand and on-chain activity.
Source: Intotheblock
We can see this decreasing interest if the adoption percentage fell from 53% to 23% last week.
Such a huge decrease can lead to a shrinking user base, which further results in a lower demand for transactions and therefore reduces total network activity. This also shows that no users enter the market, while the existing also close theirs.
Source: Santiment
Moreover, Mantra’s Price Daa Divergence has remained negative in the past three weeks, which further confirms the decrease in network activity.
Historically, when a network does not lack users, it is a price decrease for its native tokens, because it reflects the market bears. In this case we can see the lack of question slowly influencing the price movement for negative.
Impact on the graphs of OM?
Although the adoption percentage of Mantra has fallen in recent months, the price of OM has been kept strong. At the time of writing, the Altcoin even acted at $ 7.53. This meant an increase of 5.73% in the last 24 hours.
Similarly, these bullish prospects seemed to have extended the monthly graphs with 57.85%.
Source: Coinalyze
Despite the price pump, however, the total market sentiments remain bearish.
For example, we can see this areas, because most investors take short positions. According to Coinalyze, the Futuresmarkt has 52.66% of investors who fail, while 47.3% is long. When short positions dominate the market, this implies that most traders expect the price in the short term to fall – a sign of strong bearish sentiment.
Source: Coinglass
Similarly, we can see this Bearish sentiment, because the market has seen more exchange of exchange than out. Moreover, the Netflows from OM became positive and reached $ 1.02 million after he was negative for three consecutive days. When this becomes positive, this means that more traders are transferring them to -to trade fairs, probably prepare to sell.
If this goes on sale, this can put pressure on the price of OM.
Simply put, although the price of OM makes a profit, the fundamentals of the network are still weak. The decrease in network acceptance is an illustration of this. For the price to maintain its recent profit, the network needs new addresses and more active users.
Usually the low demand results in lower prices. So if the adoption percentage continues to fall, the speculative demand can lower the price and a return can fall to $ 7.0.
However, if the speculative update can apply for the short term, the Altcoin will try $ 8.