MANTRA (OM) Plummets 90% in Single Day, $5.4 Billion Wiped Out

The cryptocurrency market experienced a significant shock as MANTRA (OM) plummeted by over 90% in a single day, resulting in a $5.4 billion wipeout. This dramatic crash has sparked panic among traders, drawing comparisons to the infamous Terra LUNA collapse. OM, which was trading at over $6 last week, has now dropped to around $60 cents, with a further 24% decline today. The sudden and severe drop in value has left the market in a state of uncertainty, with no immediate signs of recovery.

The crash has raised concerns about the stability and reliability of the cryptocurrency market, particularly in the decentralized finance (DeFi) sector. The rapid loss of value in OM has led to a wave of panic selling, as traders rush to liquidate their positions to avoid further losses. This has created a ripple effect throughout the market, with other cryptocurrencies also experiencing significant volatility.

Technical indicators paint a grim picture for OM. The Relative Strength Index (RSI) fell drastically during the crash, dropping from 45 to a shocking 4 before going up slightly to around 10.85. Values under 30 typically suggest an oversold asset and attract buyers looking for a rebound, but OM’s RSI has been hovering near rock bottom for hours. This indicates that the market simply isn’t stepping in to support the price, even after such a massive drop. It’s a clear reflection of a collapse in trader confidence, and a rebound looks highly unlikely without a major shift in sentiment.

Adding to the bear scenario is OM’s Directional Movement Index (DMI). The ADX, which measures trend strength, stands at a hefty 47.23, well above the 25 mark that usually signals strong momentum. Unfortunately for OM, that momentum is firmly on the bearish side. The -DI, which tracks selling pressure, remains elevated at 69.69, while the +DI, representing buying strength, has dropped to just 2.42. This imbalance underlines how one-sided the market sentiment is right now.

Even as panic selling eases slightly, buyers are nowhere to be found. The charts show no meaningful support, and unless there’s a surprising catalyst, OM could be looking at either further downside or extended stagnation. Right now, OM’s technical structure is being compared to the worst moments of the LUNA collapse, only this time, the absence of speculative rebound interest makes it look even more fragile. The path ahead remains uncertain, but one thing is clear that OM is still firmly in the danger zone.

The situation has been exacerbated by the lack of transparency and regulation in the cryptocurrency market. The absence of clear guidelines and oversight has made it difficult for investors to assess the risks associated with different cryptocurrencies, leading to a lack of trust and confidence in the market. This has been further compounded by the fact that many cryptocurrencies are highly speculative and volatile, making them susceptible to sudden and dramatic price movements.

The crash has also highlighted the need for greater due diligence and risk management in the cryptocurrency market. Investors and traders need to be more cautious and selective in their investments, and should conduct thorough research and analysis before making any decisions. This includes assessing the underlying technology and fundamentals of a cryptocurrency, as well as its market position and competitive landscape.

The situation has also raised questions about the role of centralized exchanges and platforms in the cryptocurrency market. Many of these platforms have been criticized for their lack of transparency and accountability, as well as their failure to protect investors from fraud and manipulation. This has led to calls for greater regulation and oversight of these platforms, as well as the introduction of stricter standards and guidelines for their operation.

The crash has also had a broader impact on the cryptocurrency market, with other cryptocurrencies also experiencing significant volatility. This has led to a wave of panic selling, as traders rush to liquidate their positions to avoid further losses. This has created a ripple effect throughout the market, with other cryptocurrencies also experiencing significant volatility.

The situation has also raised questions about the future of the cryptocurrency market, and whether it can continue to grow and thrive in the face of such volatility and uncertainty. While the market has shown resilience in the past, the recent crash has highlighted the need for greater stability and predictability, as well as the introduction of new technologies and innovations that can help to mitigate the risks associated with cryptocurrency investments.