Can Traders Trust the MANTRA Price Bounce? Post-Mortem Report on Collapse Incoming

Harvey Hunter is a Junior Content Creator at Cryptonews.com. With a background in Computer Science, IT, and Mathematics, he seamlessly transitioned from tech geek to crypto journalist.

Many have quickly written off the once altcoin front-runner following a weekend market event that sparked a 90% Mantra price collapse, but an upcoming post-mortem report could yet set the record straight.

The new week has seen a buy-the-dip rally take shape, with OM recovering 90% to reach $0.70—still far below its pre-crash level of $6.15.

However, traders remain cautious. Whale sell-offs and controversial tokenomics continue to dampen sentiment, leaving the altcoin’s place among the “best crypto to buy” in some doubt.

Should Traders Really ‘Buy-the-Dip’ On Mantra

A statement of events released by Mantra (OM) sheds light on a chaotic weekend that saw the altcoin token crash by 90% after several large liquidations on a centralized exchange.

The statement attributes the event to the forced closure of significant OM positions by the exchange, rather than any insider activity.

Since the weekend incident, the team has been working together across departments and time zones to provide this fact-based assessment of the events.

Here are the key facts and our further actions:

– There were no $OM sales by the MANTRA team during this period of market distress.

– We are fully cooperating with the exchange to understand the event better and provide any assistance needed.

– We will be sharing a post-mortem report with the community in the coming days.

In a statement to Cryptonews Group, Binance said a warning had been placed on the OM trading page since January, highlighting dramatic changes in the tokenomics and an increased token supply.

“We advise users to be aware of any project changes that could affect the token price,” a Binance spokesperson said.

A post-mortem report is now set to shed further light on the events that led to the rapid 90% crash in Mantra price over the weekend.

The statement from the Mantra team also mentions that the team members are available on Discord to answer any questions from the community.

A deeper analysis of the events leading up to the crash suggests that the rapid price decline was no surprise to some in the crypto sphere.

Earlier this year, blockchain auditor ThreeSigma raised concerns over Mantra, alleging that the core team members hold around 90% of the total token supply.

The firm also highlighted the issues of centralized risk and a lack of transparent governance in the project, drawing parallels with the 2022 collapse of Terra Luna (LUNA).

These underlying structural risks remain relevant even after the recent events, which could continue to worry investors.Mantra Price Analysis: Is this the Bottom for OM?The Mantra price is now at a critical juncture as the symmetrical triangle pattern, formed after the flash crash, threatens to break down.

The token is currently retesting the pattern’s lower support zone. A decisive breakdown here could send OM tumbling toward $0.4650—a 30% drop from current levels.

Alternatively, a rebound at support could launch a recovery, targeting the triangle’s upper resistance.

A confirmed breakout from the pattern projects upside toward $1.55, marking a possible 120% Mantra price gain.

Momentum indicators appear to favor bullish continuation. The MACD line is now holding above the signal line following a golden cross—a signal of sustained buying pressure.

Meanwhile, the Relative Strength Index (RSI) remains in oversold territory at 17, indicating that sellers may be losing their edge.

However, overall sentiment is still crucial. All eyes will be on the upcoming post-mortem report, which could tip the scales one way or the other.