OM Token Plunges Below $0.40

The Mantra protocol’s native token, OM, has fallen below $0.40, sparking speculation about a potential rebound as its Relative Strength Index (RSI) drops to an oversold level of 17.18.

This steep decline follows a dramatic crash in April 2025, erasing billions in market capitalisation and shaking investor confidence.

With technical indicators flashing extreme bearish signals and the MANTRA team implementing token burns and governance reforms, the question looms: can OM recover, or is further downside inevitable?

A catastrophic OM token crash and lingering fallout

On April 13, 2025, MANTRA’s OM token plummeted from $6.30 to $0.37 in mere hours.

The collapse slashed the project’s market capitalisation from $6 billion to under $700 million.

Attributed to forced liquidations during low-liquidity weekend trading, the crash sparked rumours of exchange involvement, which the team swiftly denied.

CEO John Mullin released on-chain data to counter claims of insider selling, confirming that team-held tokens remained locked.

In response to the crisis, MANTRA’s leadership took decisive action to curb selling pressure.

CEO John Mullin burned 150 million staked OM tokens from the team’s allocation on April 29, 2025.

An additional 150 million tokens from ecosystem partners are slated for destruction, totalling 300 million OM—roughly 16.5% of the total supply.

This significant reduction aims to tighten supply and bolster investor confidence.

However, the market has yet to respond, with OM lingering below key technical thresholds, suggesting scepticism persists.

read more

The success of the introduced reforms could determine whether MANTRA regains its former stature or continues to falter.

Technical analysis shows the OM token is in an oversold region

From a technical analysis point of view, the MANTRA price is now trading well below its 20-day EMA of $0.51 and 50-day EMA of $0.74, highlighting a strong bearish trend.

But the daily Relative Strength Index (RSI) is at 17.01, one of the lowest levels since the April crash, indicating extreme oversold conditions.

Usually, RSI readings below 20 are followed by relief rallies as buyers capitalize on the perceived undervaluation.

Also, the MACD has switched to bullish with a crossover and the histogram moving above the zero line.

If buying momentum emerges, OM could rise to the $0.42 resistance, with a breach of $0.54 offering a stronger bullish confirmation.

Conversely, failing to hold the $0.37 support could lead to a drop to $0.30, potentially increasing panic selling among traders.

Can Mantra price stage a comeback?

The combination of an oversold RSI, massive token burns and planned protocol upgrades creates a mixed outlook for MANTRA.

While technical indicators suggest a potential relief bounce, a sustained recovery depends on restoring investor confidence.

The $0.42-$0.54 price range will be crucial for bulls to regain, while a drop below $0.37 could worsen bearish sentiment.

As MANTRA navigates this turbulent period, its ability to execute on promised reforms and stabilize price action will determine its fate.

For now, traders are watching closely, considering the possibility of a rebound and the risk of further declines.