Whales Have Been Loading Up on $OM Long Before April's 90% Crash

Whales have been loading up on $OM long before April's 90 % crash. Back in February they added 15.6 million tokens (about $93 million) in one week

Whale activity has been a key driver of price trends in recent months, with their massive transactions and shifting interest impacting the cryptocurrency market.

In February, whales made a significant move by accumulating 15.6 million OM tokens, amounting to approximately $93 million, over a seven-day period. This buying pressure pushed the price of OM to roughly $6, marking a 70% surge from $3.5, which occurred just 17 days prior.

Early March saw another bulk purchase of 20 million OM tokens, this time valued at $143 million, as reported by on-chain data. These tokens were transferred from Binance wallets to a new wallet, indicating the continuation of large-scale buying.

As the price dipped by 8% on that news and slipped below a rising-wedge pattern, it hinted at the possibility of profit-taking by traders.

Following the massive price crash in April, which saw OM plummet from highs of $6 to lows of $0.64, opportunistic outsized buying quickly materialized.

Wallets tracked by Santiment can be seen accumulating OM throughout May, with recent whale alerts indicating fresh buys around $0.41-0.42. However, the volumes of these buys were lower, and the risk scores had dropped, suggesting that whales were becoming more cautious with their trades.

Mantra DAO, the developer of OM, is positioning the token as a play on the real-world asset market, which could attract interest from institutional investors. OM has a VASP licence in Dubai, a $1 billion deal with DAMAC, and support from Middle-East funds.

Moreover, OM has a low token concentration of 0.13, making the network harder to manipulate. Partnerships with large institutions could also increase demand for OM if the $16 trillion RWA market grows.

However, the April collapse of OM demonstrated the susceptibility of the token to centralized exchange liquidations and sudden exits by large holders, which can lead to swift and brutal corrections.

If accumulation by whales continues, it could pave the way for a rebound in OM to exceed the $1 mark, setting the stage for a potential recovery towards the old highs of $7.5. A break above the $6.47 level could be pivotal for a complete rebound.

Conversely, if buying momentum stalls and large players begin to cash out, it could open the door for further declines, potentially pushing OM to revisit the $0.30 level or lower.

The actions of big players will be crucial in determining the future trends of OM, and their interest could have significant implications for the token's price movements.