- Mantra (OM) has plummeted below $0.50 after a massive whale sell-off, highlighting weak investor confidence and bearish market signals.
- Despite technical exhaustion, the token’s recovery remains uncertain without fresh demand or bullish catalysts.
Mantra [OM] has plunged into a turbulent phase, crashing below the critical $0.50 level after a massive whale dump shook investor confidence. The token, once trading above $6, now hovers around $0.41, representing a staggering 93% drop from its all-time high. The capitulation came after a whale offloaded 2 million OM—worth $871K—into Binance, realizing a jaw-dropping $25.44 million in losses. This follows a previous 4 million OM withdrawal just weeks earlier, underlining a brutal transition from unrealized to realized losses.
OM‘s recent breakdown from a descending channel has accelerated its fall, painting a bleak technical outlook. A sharp wick on the recent candle suggests panic-driven liquidations—often a hallmark of final-stage capitulation. Technically, the Relative Strength Index (RSI) sits at an extremely oversold 17.22, while the MACD hints at waning bearish momentum. However, with no clear bullish trigger, exhaustion alone may not be enough to reverse the trend.
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On-chain data paints an equally grim picture. Key metrics from IntoTheBlock show weakness across the board. Net Network Growth lags at 0.69%, indicating slow adoption. Only -2.13% of addresses are currently in profit, while whale concentration continues to slide. Large transactions have also fallen by over 11%, signaling dwindling interest from high-volume players.
Valuation indicators present a conflicting narrative. The MVRV Z-score, at -2.36, hints at deep undervaluation—often a bottoming signal. Yet, the Network Value to Transactions (NVT) ratio has surged to 26.37, suggesting the price is disconnected from real on-chain utility. Meanwhile, a drop in the Stock-to-Flow Ratio signals weakening long-term holding conviction.
So, has OM hit rock bottom? While technicals suggest oversold conditions, the absence of demand and bearish sentiment could delay any meaningful recovery. A short-term bounce is possible, but lasting upside may require strong catalysts like protocol upgrades, token burns, or renewed whale accumulation.
For now, OM remains in limbo—caught between undervaluation and investor fear. Traders should tread cautiously, as the path forward hinges on whether confidence returns to the Mantra ecosystem.
