As of May 5, 2025, Mantra (OM) has experienced a significant price drop, falling below the $0.50 mark. Currently trading at approximately $0.39, this decline marks a substantial retreat from its all-time high of $9.11 reached in February 2025 .
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šØ Why Did OM Crash?
1. Whale Sell-Offs: A major factor contributing to OM's decline is the substantial sell-off by large holders, commonly referred to as "whales." On-chain data indicates that addresses holding between 100 million and 1 billion OM tokens reduced their holdings from 477 million to 272 million tokens. This translates to approximately $760 million worth of OM being offloaded, exerting significant downward pressure on the price .
2. Overbought Technical Indicators: Technical analyses suggest that OM had entered overbought territory. Indicators like the Bollinger Bands showed high volatility, and the price touching the upper band signaled a potential pullback. Such technical setups often precede price corrections .
3. Market-Wide Corrections: The broader cryptocurrency market has faced corrections, influenced by macroeconomic factors such as geopolitical tensions and regulatory developments. These external pressures have contributed to the overall bearish sentiment, affecting tokens like OM .
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š® Can OM Recover?
1. Institutional Partnerships: Despite the recent downturn, Mantra has secured significant partnerships, notably a $1 billion agreement with the DAMAC Group to enhance accessibility to tokenized assets in the Middle East. Such collaborations could bolster OM's utility and demand in the long term .
2. Whale Accumulation: Interestingly, while some whales have sold off their holdings, others have been accumulating OM tokens. A newly created wallet recently acquired 2.46 million OM tokens worth approximately $9.92 million, indicating continued interest from large investors .
3. Technical Support Levels: Technical analysis points to potential support levels around $3.31. If OM can maintain this support, it may stabilize and potentially initiate a recovery phase .
4. Long-Term Projections: Analysts have varied projections for OM's future price. Some foresee a potential rise to $10ā$15, especially if the token continues to secure institutional partnerships and expand its real-world asset (RWA) ecosystem .
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š Final Thoughts
While Mantra (OM) has faced a significant price correction, several factors suggest potential for recovery. Institutional partnerships, ongoing whale accumulation, and technical support levels provide a foundation for optimism. However, investors should remain cautious, considering the volatile nature of the cryptocurrency market and the various external factors influencing it.