Mantra's Price Plummets 94% Amid Trust Crisis, Investors Skeptical

Mantra's price has been in a state of decline, with no signs of recovery following a significant crash two weeks ago. The token's value, which was at $9.10 in March, has dropped to around $0.50, resulting in a loss of over $7.5 billion in value. Investors are expressing skepticism, questioning whether forced liquidations or insider activity were responsible for the collapse.

The management team of Mantra has attributed the collapse to forced liquidations by an exchange. However, many in the crypto community believe there may be another explanation. Users are questioning why Mantra was the only coin to suffer from such a liquidation event, with some speculating that insiders may have been responsible for dumping large quantities of tokens.

As the price of Mantra languishes, the company is facing a trust crisis. With investor confidence at an all-time low, the chances of a quick recovery appear slim. John Patrick Mullin, president of Mantra, is set to give an important speech at TOKEN2049 from April 30th – May 1st. In the interview prior to the collapse, Mullin promised an update for ecosystem evolvements as well as his anticipated token burn. During his speech, he will encourage the crypto community to unify together to and avoid compulsory liquidations in the future which have decrease trust investors, amongst investors.

Mantra is making moves to stabilize the token price, including a token burn as well as potentially considering a $109 million buyback. The company wants to burn 300 OM Tokens from its Treasury, reducing the number of OM Tokens on circulation which could positively affect value. Additionally, the token buyback could increase demand helping to support the price. Despite these efforts, many believe that they may not be enough to restore investor confidence. The fundamental issue remains: trust has been severely eroded, and the Mantra price is struggling as a result.

The technical indicators for Mantra are equally troubling. The OM price chart reveals a sharp decline after the March high, with the price sinking below all key moving averages. This suggests that bears are firmly in control. The formation of a bearish pennant pattern further reinforces the outlook that the Mantra price will continue to fall, potentially reaching a low of $0.2330 — the lowest swing point from February last year. Although Mantra may appear cheap at its current price, there are significant risks ahead. Failed projects in the past, such as Celsius and FTX, have seen sudden short squeezes, but this is not a guaranteed outcome. Until trust is restored and investor sentiment shifts, the Mantra price may struggle to find a stable footing.

With the trust of investors severely damaged, the future of Mantra’s price remains uncertain. While Mullin’s upcoming speech and the proposed measures like token burn and buyback might offer some hope, the reality is that it may take more than these actions to restore confidence. As the technical analysis points to further decline, it seems likely that the Mantra price will continue its downward trajectory unless a significant shift occurs in investor sentiment.