The Mantra (OM) token has fallen below $0.40, with RSI at 17.18, signalling oversold conditions.
300M OM tokens are scheduled for burning to curb supply, but price recovery remains elusive.
The Mantra team also plans governance reforms to restore trust, though volatility persists.
The Mantra protocol’s native token, OM, has plunged below $0.40, igniting 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.
Beyond token burns, MANTRA’s team is pursuing structural changes to rebuild trust.
Plans for decentralising validators and upgrading governance aim to enhance the protocol’s resilience and transparency.
These initiatives, while promising, require time to materialise and may not immediately impact price action.
Despite these efforts, investor trust remains fragile, with OM struggling to regain footing.
Market participants remain cautious, with volatility dominating OM’s short-term outlook.
The success of the introduced reforms could determine whether MANTRA regains its former stature or continues to falter.
Technical indicators show the OM token is in an oversold region
From a technical analysis point of view, MANTRA’s price now sits well below its 20-day EMA of $0.51 and 50-day EMA of $0.74, underscoring a pronounced bearish trend.
However, the daily Relative Strength Index (RSI), at 17.01, marks one of the lowest levels since the April crash, indicating extreme oversold conditions.
Historically, RSI readings below 20 often precede relief rallies, as buyers capitalise on perceived undervaluation.
In addition, the MACD has turned bullish with a crossover and the histogram moving above the zero line.
If buying momentum emerges, OM could target the $0.42 resistance, with a break above $0.54 signalling stronger bullish confirmation.
Conversely, failure to hold the $0.37 support risks a slide to $0.30, potentially deepening panic selling.
Can Mantra price stage a comeback?
The convergence of an oversold RSI, significant token burns, and planned protocol upgrades creates a complex outlook for MANTRA.
While technical indicators hint at a possible relief bounce, sustained recovery hinges on restored investor confidence.
The $0.42–$0.54 price range will be critical for bulls to reclaim, while a drop below $0.37 could intensify bearish sentiment.
As MANTRA navigates this turbulent period, its ability to execute on promised reforms and stabilise price action will shape its path forward.
For now, traders watch closely, weighing the potential for a rebound against the risk of further declines.
