MANTRA Token Plummets 90% in Hour, $5.5B Wiped Out

On April 13, the cryptocurrency market experienced a significant shock as the price of MANTRA Token (OM) plummeted by over 90% within less than an hour. This dramatic drop erased $5.5 billion in market value and resulted in $68.8 million in liquidations. The token, which is associated with a layer-1 blockchain focused on real-world asset tokenization, saw its price fall from approximately $6.33 to under $0.50. The sudden collapse sparked allegations of insider dumping, with reports indicating that whales transferred $91 million worth of OM to exchanges in the days leading up to the crash.

MANTRA's CEO attributed the crash to "reckless forced liquidations" by centralized exchanges during low-liquidity hours. However, analysts pointed to suspicious on-chain activity, including a 4.5% supply dump by linked wallets, drawing comparisons to the historic collapse of LUNA. The incident has left thousands of investors demanding answers and accountability from the MANTRA team, fostering pessimism about the project's future.

Technical analysis of the OM 5-minute chart revealed a severe bearish breakdown, with the token's price falling from a resistance zone of $6.39 to a support level near $0.67 to $0.70. The Relative Strength Index (RSI) indicated oversold market conditions, while the Moving Average Convergence Divergence (MACD) indicator showed bearish control with the market sinking deeply below the zero line. The market structure of OM is characterized by lower highs and lower lows, indicating a heavy downtrend.

Looking ahead, the future of OM remains uncertain. Bullish scenarios suggest that the token could potentially rebound to between $7.11 and $11.53 by late 2025, driven by developments in the MANTRA ecosystem and the adoption of real-world asset tokenization. However, bearish prospects highlight the significant challenge of regaining investor trust, with short-term price targets expected to remain below $0.80. The high volatility and market sentiment surrounding OM, coupled with investigations into alleged insider activities and forced liquidations, will play a crucial role in determining the token's long-term viability. The future of OM hinges on the transparency of the project team and the regeneration of investor confidence.