MANTRA Token Faces Continued Price Challenges
The MANTRA protocol’s token,OM,has once again dipped below $0.40, sparking worries among traders.Technical indicators point to strong selling pressure. in the past 24 hours, MANTRA (OM) has dropped by 6.2%, and it’s down nearly 94% over the past month. This follows a volatile period after a strong Q1 performance. On April 13, the token plummeted from around $6.30 to $0.37 within hours, reducing its market cap from $6 billion to under $700 million.
The project blamed the crash on forced liquidations during low-liquidity weekend trading. The team denied Binance’s involvement and insider selling. CEO John Mullin shared on-chain data showing team-held tokens remained locked. To stabilize the market, Mullin pledged to burn 150 million OM tokens, completed on April 29. Another 150 million OM from partners was also set aside for burning, totaling 300 million tokens, or 16.5% of the total supply. Despite these efforts, investor confidence remains low.
Currently, OM trades below key support levels.The 20-day EMA is around $0.51, and the 50-day EMA is at $0.74. The relative strength index has fallen to 17.18, suggesting the downward trend might be overextended. A relief bounce could occur if buyers intervene.
OM may move toward the $0.50 resistance zone if it breaks above $0.42. A daily close above $0.54 would signal a bullish shift. If selling pressure continues and OM falls below $0.37, the next support is at $0.30. Breaking this level could lead to further declines.
The MANTRA team plans to decentralize validators and upgrade governance. These steps might help restore trust, but price action remains unpredictable.
