Mantra (OM) has plunged over 95% from its March highs above $6, collapsing to under $0.32 as market structure deteriorates and whales continue to exit. The breakdown from a descending price channel triggered a severe capitulation candle, erasing months of gains and pushing the RSI to an oversold reading of 25. Despite faint signs of rising user activity, OM remains mired in a low-volume danger zone with little bullish follow-through.
Whales Dump as Resistance Mounts
Data from IntoTheBlock confirms heavy long-term whale distribution. Whale netflows have plummeted by 129% over the last 30 days and an astonishing 4,000% over the past 90 days. A recent 7-day inflow spike of 234% could reflect short-term accumulation, but lacks conviction for a trend reversal. With 93.77% of OM holders underwater, the token faces significant overhead resistance. Most investors are trapped between $0.32 and $5, setting the stage for strong sell pressure on any bullish bounce. Without consistent large-scale buying, OM is unlikely to recover lost ground.
Retail Optimism Grows, But Isn’t Enough
Interestingly, address activity has increased despite the price collapse. New addresses are up 21.84%, with active wallets growing by 11.29% and zero-balance wallets rising 21.28% in the past week. This suggests that some retail investors view the current price zone as a potential bottom. However, without institutional or whale support, retail interest alone rarely sustains a long-term uptrend. Meanwhile, derivatives markets show no clear trend, with $457K in long liquidations and $143K in short liquidations, reflecting heightened volatility and indecision.
Sentiment Alone Can’t Save OM
While increased address activity hints at ongoing community interest, OM’s fundamental outlook remains weak. Structural breakdowns, continued whale outflows, and heavy unrealized losses among holders create strong bearish pressure. Without a decisive move above the $0.40 resistance zone and renewed confidence from major holders, sentiment alone is unlikely to reverse OM’s downward trajectory. Until then, the token risks further stagnation—or worse.
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.
