Will Mantra (OM) Crypto Experience Another 90% Decline in 2025?

The Mantra (OM) token faces potential further decline after a recent 90% crash. Technical analysis indicates a bearish pennant structure could push the price down to $0.05. The company plans to burn 300 million tokens to regain investor confidence, but critics view this as a tactic rather than a genuine recovery strategy. Concerns about project transparency and suspicious activities deepen market scepticism.

The Mantra (OM) token is again under scrutiny after experiencing a 90% crash, raising concerns over its potential for further decline. As of April 16, 2025, evidence suggests the emergence of a textbook bear pennant structure, which typically signals a continuation of bearish trends. Should this pattern validate, OM could tumble to approximately $0.05, reflecting another potential 90% decrease from its current value.

Recent price action indicates that OM is facing exhaustion following a rebound from its drop on April 13, where it plummeted from over $6 to a low of $0.37 due to mass liquidations and alleged insider trading. Presently, the price has consolidated into a narrowing triangle, characteristic of a bear pennant. The pattern’s measured target projects a further decline towards $0.053, suggesting a 90% depreciation from its current price of around $0.77.

As the consolidation progresses, trading volumes have consistently decreased, hinting at weakening buyer interest. The Relative Strength Index (RSI) remains severely oversold at approximately 17, with minimal indications of bullish divergence. Unless a breakout beyond $0.90 occurs to invalidate the pennant formation, the likelihood of additional downturns remains high.

In response to the dramatic price drop, the Mantra team plans to execute a burn of 300 million OM tokens from its treasury, intending to decrease the circulating supply and restore investor trust. This reduction represents a significant portion of the total allocation and is seen as part of a broader strategy aimed at stabilisation following the token’s steep decline on April 13.

While Mantra portrays this burn as a move towards long-term value creation, critics suggest it serves more as a damage control mechanism rather than a genuine attempt at recovery. Analyst Maboo describes the burn as a “desperate” attempt to generate perceived momentum, arguing that token destruction should not substitute for a viable economic design from the outset.

Maboo raised concerns over what he termed “sketchy stuff” connected to insider transactions that have increased scepticism about the project. He warns that Mantra presents “low-effort, high-risk vibes,” marking it as unsuitable for cautious investors.

Investigation into the crash has revealed questionable activities involving wallets associated with strategic investor Laser Digital, which purportedly transferred millions of OM tokens to exchanges shortly before the price drop. Laser Digital has denied any wrongdoing, but community doubts linger.

Moreover, the significant disparity between Mantra’s fully diluted valuation (FDV), which approached $1.88 billion as of April 15, and a total value locked (TVL) of approximately $3.26 million has raised eyebrows. Critics argue that such a mismatch implies the project is overvalued and excessively centralised, further fuelling distrust among investors.