MANTRA Has Started to Pick Up!

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Cryptocurrency markets have been shaken by the dramatic price movements recently experienced by the MANTRA (OM) token. In April 2025, OM lost nearly 90% of its value in just a few hours, falling from $6.30 to $0.37. This crash sparked widespread panic in the market, accompanied by speculation and speculation that eroded community confidence. However, the OM token quickly showed signs of recovery, rising to $1.10 and attracting considerable attention. So, what lies behind this dramatic decline, and what does the future hold for OM?

The sharp drop in the MANTRA token's price in April sparked widespread criticism within the crypto community. MANTRA co-founder and CEO John Patrick Mullin claimed the crash was caused by "reckless forced liquidations" initiated by centralized exchanges. Mullin explained that these liquidations, which occurred primarily during low liquidity hours, caused the price to plummet due to sudden position closures. According to this explanation, the sudden closure of a large OM investor's positions by centralized exchanges triggered sell orders, leading to the price crash. However, some members of the community were skeptical of this explanation. Some analysts on social media claimed that large amounts of OM tokens were transferred to centralized exchanges prior to the crash. This fueled speculation of "insider selling" or "rug pull." However, the MANTRA team vehemently denied these claims, emphasizing that the team and investor tokens are still locked and that there has been no change in the project's tokenomic structure. OKX CEO Star Xu described the incident as a “major scandal for the crypto industry,” stating that the exchanges’ liquidity and collateral data will be investigated.

Following the crash, the MANTRA team took swift action to restore investor confidence. CEO Mullin's decision to burn 150 million OM tokens in mid-April had a positive impact on the market. This move, which reduced the total supply from 1.82 billion to 1.67 billion, aimed to strengthen the potential for value growth by reducing the number of tokens in circulation. Following the token burn, OM jumped 200% from its low of $0.37 to $1.10. Furthermore, the listing of OM on major exchanges like Upbit contributed to the price recovery, generating a 15.7% increase. MANTRA's $109 million ecosystem fund also played a significant role in the recovery process. This fund was promoted as a "safety net" to be used for technical development, new partnerships, and marketing campaigns. In particular, MANTRA’s $1 billion tokenization deal with Dubai-based real estate giant DAMAC is seen as a strong foundation supporting the project’s vision of integrating real-world assets (RWA) onto the blockchain.

From a technical perspective, OM's price action is volatile. Currently trading around $0.33, OM is attempting to break above the 0.5 psychological level, which is seen as a critical threshold for OM's short-term direction. A strong break above the $0.55 resistance level could lead to a move towards $0.60. However, warnings are being raised that a break below the $0.39 support level could send the price down to $0.30. Market sentiment remains in extreme fear territory. Some analysts argue that despite OM's potential for recovery, it carries risks similar to the 2022 collapse of Terra LUNA. Like LUNA, OM is also vulnerable to sudden liquidity issues and liquidations stemming from centralized exchanges. However, MANTRA's robust technological infrastructure, built on the Cosmos SDK, and its vision focused on regulatory compliance offer promise for long-term investors.

As a Layer 1 blockchain platform focused on the tokenization of real-world assets, MANTRA (OM) aims to strengthen the bridge between traditional finance and decentralized finance (DeFi). The project's strong partnerships, particularly its presence in the growing tokenization market in the Middle East, distinguish it from its competitors. However, the April crash exposed weaknesses in the project's liquidity management and tokenomics design. For investors, OM currently presents both a significant opportunity and a significant risk. While steps like the token burn and ecosystem fund are important steps to build trust, uncertainty and skepticism persist in the market. While analysts are optimistic that OM could reach $2.01 by the end of 2025, they emphasize that achieving this goal requires transparency, strong liquidity management, and the restoration of community support. Ultimately, this turbulent period for the MANTRA (OM) token has served as a reminder of just how volatile and risky crypto markets can be. Click here to read our news about ETHFI. Don't forget to follow us on X to stay informed about the latest developments!