- MANTRA (OM) has plunged below $0.40, with its RSI hitting an extremely oversold level of 17, signaling potential for a technical bounce.
- However, continued bearish momentum and weak investor confidence leave the token vulnerable to further declines.
The MANTRA (OM) token has plunged once again, slipping beneath the critical $0.40 threshold amid intense market pressure. With its Relative Strength Index (RSI) dropping to an ultra-low 17.18, technical indicators now suggest the token may be severely oversold — but is a bounce on the horizon, or is there more pain ahead?
OM is currently down over 6% in the past 24 hours and a staggering 94% from its highs just weeks ago. The dramatic collapse on April 13 saw OM tumble from $6.30 to $0.37 in a matter of hours, wiping out over $5 billion in market capitalization. While the MANTRA team cited forced liquidations during thin weekend trading, many investors remain unconvinced, especially in the absence of a detailed explanation regarding exchange activity.
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To restore confidence, CEO John Mullin announced a token burn of 300 million OM — approximately 16.5% of the total supply — with half coming from the team’s allocation and the other half from ecosystem partners. Despite the burn, OM continues to trade well below key support levels, with its 20-day and 50-day EMAs hovering at $0.51 and $0.74 respectively.
Technical analysis points to extreme bearish momentum, but also hints at a potential reversal. An RSI near 17 typically indicates a heavily oversold asset. Should OM climb back above $0.42, a retest of the $0.50 resistance zone — aligned with the 20-day EMA — could be on the table. A sustained move above $0.54 would further solidify bullish momentum.
However, if OM loses the fragile $0.37 support level, the next psychological floor lies at $0.30 — a break of which could trigger a fresh wave of panic selling.
With the MANTRA team pledging more structural reforms, including governance upgrades and validator decentralization, longer-term optimism isn’t off the table. For now, though, all eyes are on whether OM’s battered price can stage a technical recovery or if another leg down awaits.
