Mantra (OM), once a rising player in the Real World Asset (RWA) tokenization space, continues to struggle at its lowest levels since March 2024. Even as Bitcoin and most altcoins rebound, Mantra’s price remains severely depressed, highlighting persistent skepticism among investors following the project’s dramatic collapse earlier this month.
Mantra Price Struggles to Recover
As of Sunday, OM was trading at $0.5086, marking a staggering 95% decline from its year-to-date high. While the broader crypto market has seen renewed optimism, Mantra has yet to regain momentum.
The collapse two weeks ago has been attributed by the Mantra team to forced liquidations by an exchange. However, many community members remain unconvinced, speculating that insider dumping was the real cause. Skeptics point to the fact that Mantra was the only major token affected by such liquidations, further eroding investor confidence.
CEO to Address Community at TOKEN2049
John Patrick Mullin, CEO of Mantra, is scheduled to deliver an important update at TOKEN2049 in Dubai between April 30 and May 1. Mullin plans to discuss new ecosystem developments, details regarding a planned token burn, and steps aimed at rebuilding trust within the community.
In a statement shared on social media, Mullin acknowledged the financial losses suffered by many investors and stressed that “trust is everything” for the project. He has called for broader crypto community cooperation to prevent future forced liquidations impacting investors.
Planned Recovery Measures: Token Burns and Buybacks
Mantra’s leadership has unveiled a series of initiatives aimed at reviving the token’s price:
- Token Burn: The company will burn 300 million OM tokens from its treasury to reduce supply and potentially support price appreciation.
- $109 Million Buyback: Mantra also plans a $109 million token buyback program, aiming to stimulate demand and stabilize the market.
- Enhanced Transparency: Additional governance reforms and transparency measures have been promised to regain community trust.
However, despite these efforts, market sentiment remains overwhelmingly bearish. Many investors fear that the damage to Mantra’s credibility may be irreversible.
Mantra Technical Analysis: Bearish Signals Persist
Technically, the daily chart paints a grim picture. OM’s price has:
- Collapsed below all key moving averages, confirming continued bearish momentum.
- Formed a bearish pennant pattern, typically a continuation signal for further downside.
Unless a major catalyst emerges, technical indicators suggest that OM could continue falling toward the next support level near $0.2330, a level last seen in February 2023.
Historically, failed projects like Celsius, FTX, and Safemoon have shown occasional short squeezes, leading to temporary price spikes. However, sustainable recoveries in such cases have been rare.
Final Thoughts
Mantra faces a daunting uphill battle to restore investor confidence following its recent implosion. While upcoming token burns, buybacks, and transparency initiatives are steps in the right direction, the market remains cautious. Unless the project can swiftly demonstrate real progress and address community concerns, OM’s price could continue to face severe pressure in the weeks ahead.
