Mantra price continues to languish at its lowest level since March 2024, even as Bitcoin and most altcoins rally.
Mantra (OM), a major player in the Real World Asset tokenization, traded at $0.5086 on Sunday, down 95% from its highest level this year.
This performance indicates that investors are still skeptical about the coin after its crash two weeks ago. While the management has attributed the collapse to forced liquidations by an exchange, users believe it was because of insiders dumping tokens. They question why Mantra was the only coin to have such forced liquidations.
John Patrick Mullin, who crypto.news interviewed before the collapse, said will give an update at the TOKEN2049. The event is in Dubai this week from April 30 to May 1. He will talk about new ecosystem developments and updates about his token burn.
In Dubai, he also intends to ask the crypto community to cooperate to protect investors from these forced liquidations.
Mantra price technical analysis
Mantra has also pledged to implement other solutions to boost the token price. In addition to Mulln’s token burn, the company will burn 300 OM tokens from its Treasury. A token burn reduces the number of those in circulation and potentially boosts its price.
Mantra has also hopes to implement a $109 million token buyback. A buyback increases demand for tokens and can help to stabilize its price. The team has also pledged to implement more transparency.
However, it is unlikely that these actions will be effective because the trust among investors is gone.
The daily chart shows that the OM price collapsed earlier this month. It dropped from a high of $9.10 in March to $0.50 today, erasing over $7.5 billion in value.
The Mantra price has crumbled below all moving averages, a sign that bears remain in control. It has also formed a bearish pennant pattern, which consists of a vertical line and a triangle pattern.
Therefore, while the Mantra coin may seem cheap, there is a likelihood that it will continue falling over time. It may drop to the next point at $0.2330, the lowest swing in February last year. The only caveat is that failed projects like Celsius, FTX, and Safemoon often experience short squeezes.
