$5.4B Wipeout Sparks Terra LUNA-Style Panic

The crypto market faced a big shock as MANTRA (OM) crashed by more than 90% in a single day, drawing comparisons to the infamous Terra LUNA collapse. But what’s even more worrying is that OM isn’t showing any signs of bouncing back. When LUNA crashed back in 2022, some buyers rushed in, hoping to make quick profits on the dip. That at least gave LUNA a small short-term recovery. But with OM, that’s not happening. It’s stuck under heavy selling pressure, and technical charts show very little interest from buyers. 

In simple terms, it looks like most traders are staying away for now, waiting to see what happens next. Until buying interest returns or something changes, OM is likely to stay down. 

Technically, No Buyer Interest

OM is now hovering around $0.60 after crashing from over $6 last week, wiping out $5.4B in value and creating panic in traders. It’s down 24% today as the team tries to calm the chaos. On the technical front, OM’s Relative Strength Index (RSI) fell drastically during the crash, dropping from 45 to a shocking 4 before going up slightly to around 10.85. While values under 30 typically suggest an oversold asset and attract buyers looking for a rebound, OM’s RSI has been hovering near rock bottom for hours. 

This primarily indicates that the market simply isn’t stepping in to support the price, even after such a massive drop. It’s a clear reflection of a collapse in trader confidence, and a rebound looks highly unlikely without a major shift in sentiment.

Indicators Blink Weak

Adding to the bear scenario is OM’s Directional Movement Index (DMI). The ADX, which measures trend strength, stands at a hefty 47.23, well above the 25 mark that usually signals strong momentum. Unfortunately for OM, that momentum is firmly on the bearish side. The -DI, which tracks selling pressure, remains elevated at 69.69, while the +DI, representing buying strength, has dropped to just 2.42. This imbalance underlines how one-sided the market sentiment is right now.

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Even as panic selling eases slightly, buyers are nowhere to be found. The charts show no meaningful support, and unless there’s a surprising catalyst, OM could be looking at either further downside or extended stagnation.

Right now, OM’s technical structure is being compared to the worst moments of the LUNA collapse, only this time, the absence of speculative rebound interest makes it look even more fragile. The path ahead remains uncertain, but one thing is clear that OM is still firmly in the danger zone.

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