Mantra (OM) Token Faces Potential 90% Decline Amid Concerns and Scrutiny

The Mantra (OM) token has plummeted 90% and may face further declines, potentially reaching $0.05 if current negative trends continue. A bear pennant formation suggests continued downward pressure amidst falling volumes and oversold conditions. The Mantra team plans to burn 300 million tokens to restore confidence; however, critics deem this a damaging tactic rather than a sustainable solution due to concerns over project transparency and potential insider trading.

The Mantra (OM) token is facing severe scrutiny following a staggering 90% price drop. As of April 16, 2025, the token is forming a bear pennant pattern, suggesting potential further decline. Should this pattern confirm, OM could plummet to $0.05, marking another 90% loss from its current price around $0.77.

Following its collapse from over $6 to $0.37, the price has consolidated into a narrowing triangle, a classic bear pennant indicative of bearish continuation. Volume has been decreasing throughout this consolidation phase, reflecting diminishing buying interest, while the Relative Strength Index (RSI) remains oversold at approximately 17, devoid of bullish divergence signals.

In response to its recent crisis, Mantra intends to burn 300 million OM tokens to reduce circulating supply and bolster investor confidence. This burn represents a considerable portion of the total OM allocation and is part of their broader strategy for market stabilization following the dramatic price fall on April 13.

While the team presents this move as a commitment to value creation, critics contend it is a damage control tactic. Analyst Maboo criticises the process as a “desperate” illusion of momentum, arguing that if tokenomics requires destroying supply to make sense, they never functioned properly from the outset.

Maboo further revealed concerns regarding potential insider transactions, which contribute to scepticism around the project. He warns that Mantra gives off “low-effort, high-risk vibes,” advising cautious investors to steer clear.

On-chain investigations have uncovered questionable activities surrounding the crash, including alleged transfers of millions of OM tokens by wallet addresses linked to the investor Laser Digital. Despite Laser Digital’s denial, the community’s scepticism persists.

Additionally, Mantra’s fully diluted valuation (FDV) of approximately $1.88 billion, contrasted with a modest total value locked (TVL) of around $3.26 million, has raised suspicions of overvaluation and centralization within the project.