Crypto markets are abuzz as MANTRA’s OM token plunged under the $0.40 barrier, stoking fears of a prolonged bearish trend among traders. The sharp decline highlights the volatile nature of altcoins—a narrative increasingly common throughout the digital asset ecosystem.
This latest MANTRA price slide follows weeks of turbulence, with OM shedding 6.2% in the past day and dropping nearly 94% over a single month. Such rapid declines are reminiscent of other DeFi disruptions—but what’s behind this extreme move? The token faced a dramatic flash crash on April 13, plummeting from around $6.30 to just $0.37 within hours, causing the MANTRA protocol’s $6B market cap to collapse to below $700M. Forced liquidations during thinly traded weekend markets are cited as the primary catalyst, further amplified by low liquidity on major exchanges. Notably, team-held tokens remained untouched, cutting off speculation of insider selling.
In a bid to reassure the community, MANTRA’s leadership executed a massive supply reduction—burning 150M staked OM tokens from the team’s October 2024 mainnet launch allocation. A further 150M OM from ecosystem partners was also earmarked for removal, eliminating about 16.5% of total supply by April 29. However, despite this significant token burn, OM’s price action remains muted, signaling persistent market skepticism.
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Technically, OM is still trading beneath key support lines. Its 20-day EMA sits at $0.51, with the 50-day EMA higher at $0.74—levels both clearly surpassed on the downside. The relative strength index (RSI) has plunged to 17.18, usually seen as deeply oversold in technical analysis. A bounce is possible if buyers step in, yet conviction is currently thin.
If OM can retake the $0.42 level, it could set sights on resistance at the 20-day EMA. Closing above $0.54 would signal a return to post-crash stability and underline renewed bullish momentum. On the other hand, failing to defend the $0.37 support would expose OM to further losses, with the next psychological floor at $0.30—any break lower could trigger another wave of panic selling.
For investors seeking to understand the risks and rewards in today’s market, our analysis on crypto asset tokenization and future forecasts offers broader context.
Looking forward, the MANTRA protocol’s roadmap features more decentralization of validators and governance upgrades—a positive for long-term trust. Yet, with sentiment so fragile, experts suggest that confidence will only return if market makers and larger holders visibly support prices around critical support zones. For now, OM’s saga is emblematic of how fast sentiment and fortunes can shift in decentralized finance.
Interested in exploring other high-volatility crypto events? Check out our feature on Bitcoin inflows, exchange trends, and market speculation.