Can Mantra (OM) Survive Another 90% Crash?

Is Another Collapse Coming for Mantra (OM) in 2025?

The crypto markets are never short of drama  and this week, all eyes are on Mantra (OM). After suffering a jaw-dropping 90% crash just days ago, the embattled token is now facing renewed pressure, with technical indicators flashing even more red flags.

As of April 16, 2025, Mantra's chart is forming a bear pennant, a bearish continuation pattern that often signals another leg down. If this pattern plays out, OM could plummet to around $0.05, representing yet another 90% drop from current levels near $0.77.

Let’s break down what’s happening  and why some investors are calling OM a “hard pass.”

Bear Pennant Breakdown: More Pain Ahead?

Technical analysts are pointing to a bear pennant formation on OM's 4-hour chart  a setup that’s typically seen after a sharp crash followed by a tight consolidation.

• The recent price action shows OM bouncing weakly from $0.37 (April 13 low) to ~$0.77.
• However, volume is declining  a bearish sign.
• The Relative Strength Index (RSI) is still hovering near 17, deep in oversold territory, with no clear sign of bullish divergence.
  
   

Unless bulls can push OM above the key resistance at $0.90, the bearish pennant could resolve lower  targeting $0.053, based on the flagpole projection.

👉 Learn more about technical analysis patterns
👉 Explore how RSI impacts crypto trading

300 Million OM Burn: Real Solution or PR Stunt?

In an apparent effort to restore faith, the Mantra team announced a massive token burn of 300 million OM a move they framed as part of a long-term “stabilization strategy.”

But not everyone’s convinced.

While token burns can reduce supply and potentially boost price, analysts argue this is damage control, not a real fix. According to crypto analyst Maboo, the move screams desperation:

“If your tokenomics only make sense after destroying part of the supply… they never made sense to begin with.”

That harsh criticism reflects a growing belief that Mantra’s model was flawed from the start. And with its fully diluted valuation (FDV) still sitting near $1.88 billion, the token is seen as grossly overvalued  especially with just $3.26 million in total value locked (TVL).

Check how FDV and TVL work in DeFi
Understand token burns

Insider Allegations & Shady Activity

Things get murkier when you dig into the on-chain activity. Investigators have flagged suspicious transfers of OM tokens ahead of the April 13 crash.

• Wallets linked to Laser Digital, a strategic investor, allegedly moved millions of OM tokens to exchanges right before prices collapsed.
• Laser Digital denied wrongdoing, but many in the community remain skeptical.
• Critics argue that OM’s token distribution and insider behavior raise serious transparency and centralization concerns.

The controversy has sparked conversations around regulation and investor protection  especially in light of past scandals like FTX.

👉 Read more about on-chain crypto forensics
👉 Explore the risks of centralized token control

A High-Risk, Low-Reward Play?

With technicals flashing bearish, fundamentals looking shaky, and insiders under scrutiny, Mantra (OM) now finds itself in a very precarious spot.

For investors, the warning signs are hard to ignore:

• A possible 90% crash toward $0.05
• Weak rebound with fading volume
• Bear pennant setup with bearish RSI
• Overvaluation vs. actual DeFi usage
• Alleged insider selloffs and lack of transparency

Unless OM breaks above $0.90 with strong volume and clarity emerges around insider activities, this crypto may remain a no-go zone for cautious investors.

Final Thoughts:

Mantra’s story is a cautionary tale in the world of crypto: hype can vanish overnight, and weak fundamentals can’t be patched with token burns or PR campaigns.

For now, technicals and fundamentals both suggest that OM could crash further. Investors looking for stability may want to steer clear or wait for clear signs of real reform before jumping in.

Got a hot finance tip or insider scoop? Share it  with our editorial team at [email protected] – we’d love to hear from you.