The Mantra (OM) token has fallen beneath $0.40, with RSI at 17.18, signalling oversold circumstances.
300M OM tokens are scheduled for burning to curb provide, however value restoration stays elusive.
The Mantra staff additionally plans governance reforms to revive belief, although volatility persists.
The Mantra protocol’s native token, OM, has plunged beneath $0.40, igniting hypothesis a couple of potential rebound as its Relative Power Index (RSI) drops to an oversold stage of 17.18.
This steep decline follows a dramatic crash in April 2025, erasing billions in market capitalisation and shaking investor confidence.
With technical indicators flashing excessive bearish indicators and the MANTRA staff implementing token burns and governance reforms, the query looms: can OM get well, or is additional draw back inevitable?
A catastrophic OM token crash and lingering fallout
On April 13, 2025, MANTRA’s OM token plummeted from $6.30 to $0.37 in mere hours.
The collapse slashed the challenge’s market capitalisation from $6 billion to beneath $700 million.
Attributed to compelled liquidations throughout low-liquidity weekend buying and selling, the crash sparked rumours of alternate involvement, which the staff swiftly denied.
CEO John Mullin launched on-chain knowledge to counter claims of insider promoting, confirming that team-held tokens remained locked.
In response to the disaster, MANTRA’s management took decisive motion to curb promoting strain.
CEO John Mullin burned 150 million staked OM tokens from the staff’s allocation on April 29, 2025.
A further 150 million tokens from ecosystem companions are slated for destruction, totalling 300 million OM—roughly 16.5% of the full provide.
This vital discount goals to tighten provide and bolster investor confidence.
Nevertheless, the market has but to reply, with OM lingering beneath key technical thresholds, suggesting scepticism persists.
Past token burns, MANTRA’s staff is pursuing structural adjustments to rebuild belief.
Plans for decentralising validators and upgrading governance intention to reinforce the protocol’s resilience and transparency.
These initiatives, whereas promising, require time to materialise and should not instantly influence value motion.
Regardless of these efforts, investor belief stays fragile, with OM struggling to regain footing.
Market individuals stay cautious, with volatility dominating OM’s short-term outlook.
The success of the launched reforms might decide whether or not MANTRA regains its former stature or continues to falter.
Technical indicators present the OM token is in an oversold area
From a technical evaluation perspective, MANTRA’s value now sits properly beneath its 20-day EMA of $0.51 and 50-day EMA of $0.74, underscoring a pronounced bearish pattern.
Nevertheless, the every day Relative Power Index (RSI), at 17.01, marks one of many lowest ranges for the reason that April crash, indicating excessive oversold circumstances.
Traditionally, RSI readings beneath 20 typically precede reduction rallies, as patrons capitalise on perceived undervaluation.
As well as, the MACD has turned bullish with a crossover and the histogram shifting above the zero line.
If shopping for momentum emerges, OM might goal the $0.42 resistance, with a break above $0.54 signalling stronger bullish affirmation.
Conversely, failure to carry the $0.37 assist dangers a slide to $0.30, probably deepening panic promoting.
Can Mantra value stage a comeback?
The convergence of an oversold RSI, vital token burns, and deliberate protocol upgrades creates a posh outlook for MANTRA.
Whereas technical indicators trace at a doable reduction bounce, sustained restoration hinges on restored investor confidence.
The $0.42–$0.54 value vary might be important for bulls to reclaim, whereas a drop beneath $0.37 might intensify bearish sentiment.
As MANTRA navigates this turbulent interval, its skill to execute on promised reforms and stabilise value motion will form its path ahead.
For now, merchants watch carefully, weighing the potential for a rebound in opposition to the chance of additional declines.
