- Despite a bullish altcoin market, mantra (OM) crashed 90% in 7 days, from ~$6.41 to ~$0.69.
- Speculation of stealth dumping or forced liquidations due to large pre-crash transfers to exchanges.
- Analysts cite centralized exchange dominance, thin liquidity, and automated liquidations, not a rug pull.
- Technical indicators remain bearish with OM below $0.70, low RSI (36.97), and weak volume. Resistance near $1.00–$1.20.
- On-chain data shows steady TVL ($342.2M) and 50% of market cap staked, but $199M in open borrowing adds risk.
- Short-term outlook is bearish unless Mantra DAO offers updates, burns tokens, and takes credible recovery actions.
In a stunning reversal, Mantra Coin (OM) has experienced an extraordinary crash of nearly 90% in price and market capitalization over the past week. Once trading at around $6.41 on April 10, 2025, OM has plummeted to approximately $0.69 by April 17, 2025, dragging its market cap from $6.17 billion to just under $688 million. The crypto community is now asking: Can Mantra recover from this steep downfall, or is this the beginning of a longer-term downtrend, or is this a rug pull similar to Hawk tuah?
Rumours or Reality? CEO Responds as Redenomination Fears Explode
The recent 90 %+ crash of Mantra (OM) triggered intense speculation, with many traders suspecting a token redenomination or smart contract migration as the cause. However, on April 15, 2025, CEO John Mullin dismissed these claims, denying any insider manipulation or rug pull. He explained the crash was due to a “technical domino effect”—as OM, used as loan collateral, began to drop in price, automated liquidations were triggered across exchanges, accelerating the sell-off.
To restore confidence, Mullin announced a buyback and burn plan to reduce supply and revealed a $109 million ecosystem fund dedicated to partnerships, tech development, and marketing. While the recovery roadmap is in place, the community remains cautious, waiting for clearer actions and transparency from the team.
Technicals Reveal Bearish Grip: OM/USD Struggles to Hold Key Levels
The TradingView OM/USDT Analysis 1-hour candlestick chart paints a bleak picture . After a brief attempt to consolidate in the $0.75–$0.80 zone, OM saw a consistent pattern of red candles with minimal volume recovery. The large red candle around 01:30 (on April 17) signalled a panic sell-off, likely triggered by cascading stop-losses and sentiment shift.
Key support levels were shattered quickly, and there’s now a psychological support forming near $0.68. However, buyers have yet to show strong conviction. The volume trend indicates declining trading interest as the token attempts to stabilise.
Notably, the RSI sits at 36.97, dangerously close to the oversold threshold. Meanwhile, the MACD indicator confirms the bearish outlook, both the MACD and signal lines remain negative, with a histogram showing shallow but consistent red bars.
This alignment reflects a lack of momentum for any upside reversal. The price briefly flirted with the $0.70 zone, but failed to reclaim it meaningfully, reinforcing that this psychological level now acts as resistance rather than support.
Unless the OM price can regain strength above $1.00 backed by volume, the current trend suggests continued weakness. For now, the mantra price remains trapped in a downward spiral, with only faint glimmers of technical hope on the horizon.
On-Chain Sentiment For OM Stays Resilient Despite Price Meltdown
Mantra (OM) has plummeted over 90%, falling from an all-time high of $8.99 to around $0.70. According to DeFiLlama’s Mantra Coin onchain analysis, OM’s market cap shrank from $6B to $681M, mirroring heavy sell-offs on centralised exchanges (CEXS) and thin on-chain liquidity.
Despite this crash, the Total Value Locked (TVL) has held steady at $342.2M, indicating that core DeFi users didn’t panic and unstake.
Over 50% of the current market cap remains staked, showing resilience among long-term holders. Trading volume spiked beyond $5B during the crash, with 75% of it stemming from CEXS. This highlights OM’s vulnerability to off-chain volatility, as on-chain liquidity remains limited—just $1.8M across Ethereum, Base, and Polygon.
Furthermore, open borrowing positions totalling $199M in ETH raise concerns about cascading liquidations if the price drops further. The gap between OM’s $1.27B fully diluted valuation (FDV) and $681M market cap adds pressure, suggesting more downside if token unlocks continue.
While the crash exposed systemic fragility, the strong staking base may serve as a stabilising force if confidence gradually returns.
Is This the Bottom for Mantra (OM), or Just the Beginning of a Bigger Decline?
Mantra (OM) is at a critical inflection point. The 90% crash within a week was not only a blow to investor sentiment but also a stark reminder of the risks tied to centralised exchange reliance and thin on-chain liquidity.
While fears of a rug pull or redenomination were put to rest by the team, the damage—both technical and psychological—has already been done.
Technically, OM remains in a bearish structure, with weak volume and failed recovery attempts below key resistance levels like $1.00. On-chain, however, the protocol shows surprising strength: TVL has held firm, over half the supply remains staked, and core users have not abandoned ship.
The proposed token burn and $109M ecosystem fund could help reignite interest, but only if backed by execution and communication. Until then, Mantra sits in a high-risk, high-uncertainty zone.
Whether this crash becomes a footnote in OM’s comeback story or the beginning of a slow fade depends entirely on what happens next and how quickly the team can regain community trust.
