Mantra (OM) has faced a significant downturn, with its price plummeting by more than 12% in a single day to $0.2516. This decline has been ongoing since early April, erasing months of gains as the token struggles below the $1 mark. Currently, OM is trading within a narrow range characterized by low volume and momentum, with indicators like the Parabolic SAR and Stochastic RSI showing no signs of a potential recovery.
Observers are left wondering whether the token can withstand this harsh correction or if further declines are imminent. Amidst this tough climate, some whale addresses have increased their holdings by 2% in the last month, demonstrating a degree of confidence despite the overall price weakness. Conversely, retail and mid-tier investors have scaled back their investments, reducing their holdings by 7.56% and 4.33%, respectively.
This shift signals a trend toward centralization that could diminish broader community involvement and negatively impact potential recovery efforts. On-chain data supports this narrative, showing a 24.34% drop in Large Transaction Volume, indicating waning interest from institutional players when support is most critical. Interestingly, while new addresses rose by 18.6% last week, the number of active addresses increased only slightly by 0.44%.
This disconnection suggests low engagement, as many of the new wallets appear to be inactive or speculative in nature. Additionally, the number of Zero-Balance Addresses decreased by 17%, suggesting that long-term users may be exiting the ecosystem. Alarmingly, 91.91% of OM holders remain in a position of loss, indicating that a potential rebound could lead to significant sell-offs, creating further resistance in recovery efforts.
The market also shows an increasing concentration of short positions near $0.2517, with a looming risk of a short squeeze if any upward movement occurs. However, barring an infusion of buying pressure, short sellers appear to maintain control over the market. In summary, the data indicates persistent weakness across price, volume, and stakeholder engagement.
The absence of new demand, combined with the high proportion of underwater holders, complicates the path to recovery for OM. Without a substantial shift in market sentiment or underlying fundamentals, the token’s trajectory may continue to trend downward.