OM Token Drops 12% in Single Day, Whales Hold 2% More

Mantra’s token, OM, has experienced a significant decline, dropping over 12% in a single day to trade at $0.2516. This decline has wiped out months of gains and deepened a downtrend that began in early April. The token's price has shown no meaningful recovery since falling from above $8, and it is now consolidating within a tight range with low volume and momentum. Indicators such as the Parabolic SAR and Stochastic RSI show no clear bullish signals, raising questions about the token's ability to survive this correction.

Over the past 30 days, whale addresses have increased their holdings by 2%, demonstrating strong conviction despite the price weakness. However, retail and mid-tier investors have pulled back, with their holdings dropping by 7.56% and 4.33%, respectively. This concentration of holdings suggests rising centralization, which may reduce volatility but also sidelines broader community engagement, making recovery less likely. Large Transaction Volume has declined by 24.34%, indicating waning interest from big players just when support was most needed. This decline often implies weakening confidence among deep-pocketed players during a price drop.

New Addresses grew by 18.6% last week, but this optimism faded quickly as Active Addresses increased by only 0.44%. This gap reveals a deeper issue: low engagement. Many new wallets appeared idle or speculative. Additionally, Zero-Balance Addresses dropped by 17%, hinting that older users may have left the ecosystem entirely. An alarming 91.91% of OM holders remain ‘Out of the Money’, creating potential overhead resistance if the price rebounds. The clustering of losses between $0.28 and $0.76 highlights how deeply investors are trapped. Unless a strong catalyst appears, the sentiment may worsen over time.

According to the Liquidation Heatmap, short positions are piling up just above $0.2517. Short Liquidation Leverage has been rising, while long liquidations are already flushed below $0.24. This imbalance suggests the market is heavily skewed toward downside speculation. However, if OM were to unexpectedly spike, it could trigger a short squeeze. In the absence of buying pressure, shorts remain firmly in control for now. The data paints a clear picture of sustained weakness across price, volume, and on-chain participation. While whales continue to dominate supply, the lack of new demand and the overwhelming number of underwater holders make recovery extremely difficult. Unless sentiment improves dramatically, OM may continue to drift lower, with short sellers reinforcing the downtrend. A short-term bounce is possible, but a full reversal appears unlikely without a major shift in fundamentals.