Mantra’s OM Worth Recovers 200%, However Analysts Warn of LUNA-Stage Danger

The worth of Mantra’s OM token has rebounded sharply after a dramatic weekend collapse, however analysts warn that the restoration could also be short-lived and structurally just like the early phases of the Terra LUNA crash in 2022.

On April 13, OM plummeted from $6.30 to under $0.50 inside hours, wiping out over 90% of its $6 billion market cap. The sell-off triggered greater than $75 million in liquidations in OM futures positions.

As panic unfold throughout the market, allegations of a rug pull started circulating on-line. Critics pointed to suspicious token transfers and the challenge’s controversial tokenomics.

OM Token Faces Terra LUNA Comparisons Amid Skepticism

The Mantra workforce shortly addressed the considerations. Co-founder JP Mullin responded instantly within the challenge’s Telegram group, stating, “We’re right here and never going wherever.”

He attributed the worth collapse to “reckless compelled closures initiated by centralized exchanges” reasonably than any wrongdoing by the workforce. Mullin additionally offered a verification deal with to indicate the workforce’s token holdings.

This response helped ease a number of the panic, with OM bouncing again almost 200% from its post-crash low of $0.37 to as excessive as $1.10 on April 14. Regardless of the restoration, skepticism stays excessive.

Critics allege that Mantra’s core workforce reportedly controls round 90% of the token provide and makes use of their OM holdings as collateral to safe high-risk loans.

Based on analyst Ed, a sudden change in mortgage threat parameters by centralized exchanges triggered a margin name, exacerbating the token’s fall.

OKX, one of many exchanges concerned, had beforehand adjusted its lending framework in response to adjustments made by Mantra in October 2024, when the challenge shifted to an inflationary mannequin and doubled its whole token provide from 888 million to 1.77 billion.

OKX CEO Star Xu described the occasion as a “large scandal,” stating that the change would launch additional reviews on the state of affairs within the coming days.

OM Worth Struggles with Key Resistance Ranges

Regardless of the worth rebound, OM’s technical indicators paint a regarding image. The token stays effectively under its 50-week exponential shifting common close to $3.25 and is now dealing with resistance on the 200-week EMA round $1.08.

The weekly relative power index has dropped to 33.31, suggesting continued weak point in market momentum.

Chart analyst AmiCatCrypto in contrast the present OM chart to LUNA’s failed restoration in 2022.

“For those who ask me if bull market is over. Brief reply. YES,” she wrote on social media, warning that any upward strikes at this level are doubtless “simply bounces.”

Regardless of short-term rallies, she added that OM may fall one other 90% in a single day.

Whereas OM has recovered some floor, the underlying structural dangers stay unresolved, leaving buyers cautious of one other potential breakdown.

OM Token Crashes After Whale Promote-Offs and Trade Deposits Shake Market

In the meantime, blockchain analytics companies level to main whale exercise and concentrated sell-offs as key triggers behind OM’s sudden collapse.

Spot On Chain revealed that whales moved 14.27 million OM to OKX simply days earlier than the worth crash.

These similar entities acquired over 84 million OM in March for $564.7 million, however after OM’s 90% plunge, their remaining holdings at the moment are price simply $62 million.

Lookonchain additionally flagged that since April 7, at the least 17 wallets have deposited 43.6 million OM onto exchanges, about 4.5% of the circulating provide.

Nevertheless, Binance attributed the crash to cross-exchange liquidations and warned customers of OM’s altering token economics months in the past. Mantra guarantees a full postmortem quickly.

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