Mantra (OM) has plunged beneath the critical $0.50 mark, raising fresh concerns among investors. The decline was triggered by a significant sell-off from a large holder, shaking confidence in the token’s short-term outlook.
Whale Sell-Off Adds Fuel to the Drop
A major whale offloaded 2 million OM tokens to Binance, worth approximately $871,000. Notably, this same whale had previously withdrawn 4 million OM — valued at $27 million — just six weeks ago. Selling now at a steep discount, the whale has realized an estimated $25 million loss, signaling a potential panic exit. Large transactions like this often disrupt price stability, especially for smaller-cap tokens like OM.
Price Action and Technical Signals
OM is currently trading around $0.4152, marking a nearly 5% daily decline. The token recently broke below a falling channel — a bearish technical formation — while the daily chart showed a long lower wick, hinting at forced or panic-driven selling.
The Relative Strength Index (RSI) has dropped to 17.2, suggesting that OM is extremely oversold. While this could open the door for a short-term bounce, it also underscores the current weakness. Meanwhile, the MACD indicator is beginning to flatten, indicating that the wave of intense selling may be slowing down.
On-Chain Metrics Highlight Challenges
Blockchain data shows OM’s fundamentals are under pressure:
Network Growth: A mere 0.69% increase in new users suggests sluggish adoption.
Profitability: Only -2.13% of holders are in profit, meaning the vast majority are holding losses.
Whale Concentration: Large holder ownership has declined by 0.05%, signaling whale outflows.
Large Transactions: Dropped 11.29%, showing waning big-player activity.
Valuation Indicators: Undervalued or Caution Ahead?
Key valuation metrics paint a mixed picture:
MVRV Z-Score: At -2.36, OM is deep in loss territory — historically a potential bottoming zone, but dependent on renewed buying interest.
NVT Ratio: At 26.37, the ratio suggests price may be elevated relative to actual blockchain usage.
Stock-to-Flow: With a value of 0.834, OM’s circulating supply is high, reducing scarcity and possibly limiting upside.
Outlook: Recovery Will Require More Than Just a Bounce
Mantra is currently navigating a tough period, marked by whale exits and weak ecosystem growth. While an oversold reading could spark a short-term rebound, a sustainable recovery will hinge on attracting new users, improving fundamentals, and introducing strong use cases or token-burning mechanisms.
Bottom Line
Mantra’s path forward faces significant hurdles, with both technical and on-chain signals pointing to caution. Investors will be watching closely to see if the project can regain trust and demand in the coming weeks.
Written by NoriFtm for the Binance Square Write to Earn program.
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