Mantra (OM) is approaching a key resistance level that has the potential to make or break it

After weeks of consistent declines, Mantra (OM) is beginning to show signs of potential recovery. On Monday, May 12, OM was trading at $0.4384, up 0.48% in the last 24 hours.

Mantra Chain's native token is showing signs of potential recovery after weeks of consistent declines.

What Happened: After reaching a daily high of $0.467, Mantra (CRYPTO: OM) is trading at $0.4384, up 0.48% in the last 24 hours. The token pulled back from the crucial resistance level of $0.45.

The bounce came after an even stronger performance over the previous weekend. On Sunday, the token surged 40% from $0.37 to a weekly high of $0.52.

The surge helped the price break above the 20-day simple moving average at around $0.45. Although the token did not manage to sustain above that resistance level, it is still trading above the $0.38 support.

What's More: The relative strength index is at 23 points, which suggests slightly oversold levels.

The token dropped to lows of $0.31 in March before staging a recovery. It is now up over 130% from the March lows.

The big picture for Mantra is still bearish as the token is below both the 20-day EMA at $0.51 and the 50-day EMA at $0.74. These key indicators suggest significant bearish momentum, which is further highlighted by recent events.

In April, Mantra took a huge hit when the token dropped 95% in just a few hours. While the CEO blamed exchange liquidations for the price fall, several investigators pointed to potential insider selling and market manipulation as the real cause.

The Mantra team made efforts to bring back the trust, with the CEO promising to burn his entire allocation of 150 million tokens, representing almost 10% of the total supply. The token burn was completed on April 29 and did not have a major impact on the price.

Since the token burn, OM dropped from $0.53 to a low of $0.4145.