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The crypto market was rocked recently when MANTRA (OM) plummeted by over 90% in just one day, sparking comparisons to the infamous Terra LUNA collapse. However, unlike LUNA, OM isn’t showing any signs of recovery — no bounce, no rush of buyers, just silence. This lack of market response has left traders and investors on edge, wondering if OM could follow in LUNA’s disastrous footsteps.
GM!
— Bitcoin Buddha (@Bitcoin_Buddah) April 14, 2025
Over $5.5B vanished in an hour as a wallet linked to @MANTRA_Chain deposited 3.9M $OM on OKX, triggering a 90% price drop.
Team reportedly controls 90% of supply – a major red flag. Many burned in the flash crash.
I feel Sorry for the $OM HOLDERS 😞 pic.twitter.com/lmegwMCRkI
OM’s Technical Struggles: A Cause for Concern
Currently trading around $0.60, a far cry from its previous value of over $6, OM has lost around $5.4 billion in market cap in a matter of days. The crypto community is watching in suspense, but despite the dramatic drop, OM’s price continues to face downward pressure, dropping another 24% today.
Analyzing OM’s chart, we see a sharp decline in its Relative Strength Index (RSI), which dropped from 45 to a mere 4, recovering slightly to 10.85. In typical market conditions, an RSI below 30 signals oversold conditions, often prompting buying interest. But OM’s case is different — despite these extreme conditions, buyers are staying away.
Bearish Sentiment Dominates
Further complicating the outlook is OM’s Directional Movement Index (DMI). The ADX, a measure of trend strength, currently sits at 47.23, well above the neutral 25 mark, signaling strong momentum — but this momentum is bearish. The -DI (indicating selling pressure) is at a concerning 69.69, while the +DI (buying strength) is a meager 2.42. This massive disparity suggests the market is firmly in the hands of sellers.
Also Read: Mantra’s OM Token Recovers After $5B Meltdown—But Is It Just a Bull Trap?
The LUNA Comparison: Worse Than Before
OM’s current situation is drawing parallels to the LUNA collapse, but there’s a key difference: LUNA had moments of speculative buying that temporarily stabilized it. In OM’s case, there’s no such rebound, leaving the asset more vulnerable than ever.
Without a significant change in market sentiment or a surprising catalyst, OM remains trapped in a bearish cycle. It could either continue to decline or stay stagnant, deep in the danger zone, with no clear path to recovery.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
