Key Takeaways
- According to IntoTheBlock, most OM investors now hold the token at a loss.
- IOMAP data shows a key resistance around $0.48, posing a threat to any short-term rebound.
- At TOKEN2049, MANTRA CEO revealed plans to cut internal validators by half to restore trust.
- OM’s price has formed a bearish flag on the daily chart, indicating that the decline might continue.
In 2024, holders of OM—the native token of MANTRA’s real-world asset tokenization project—enjoyed explosive gains. That also extended to the first few weeks this year.
But on April 13, most of those gains vanished. Like a thief in the night, OM’s price plummeted by 90%, catching many off guard.
Since then, the MANTRA team has tried to resuscitate the token’s value, but none have succeeded.
Now, the pressing question is: where does this leave OM holders, and what lies ahead for the token’s price?
OM Holders Still Hit Hard
About two months ago, 100% of OM holders were in unrealized profits after the price hit an all-time high of $8.99. But today, data from IntoTheBlock shows that this is no longer the case, as 86% of cryptocurrency holders are now deep underwater.
This decline happened basically because OM’s price crashed around mid-April. Although MANTRA has burned tokens to reduce supply and support a potential price rebound, the effort has fallen due to weak demand and minimal market interest.
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Beyond the token burn, the In/Out of the Money Around Price (IOMAP) metric suggests OM’s price may continue to face pressure due to a looming supply wall. IOMAP analyzes the volume of tokens in unrealized profits or losses to identify key support and resistance zones.
Typically, large volumes in profit point to strong support, while higher volumes in loss signal strong resistance.
According to IntoTheBlock data, major resistance is around $0.48. At that level, roughly 805 addresses accumulated over 24 million OM tokens. If the price nears this zone, many holders may attempt to break even, potentially triggering a pullback.
While OM’s price action remains bearish, MANTRA, under the leadership of John Patrick Mullin, has revealed ongoing improvements to its blockchain.
Speaking at the ongoing TOKEN2049 event, Mullin announced that the team plans to cut the number of internal validators by half this quarter. The move is part of a broader strategy to regain market trust and decentralize the network.
OM Price Analysis: Bear Flag Appears
Meanwhile, OM’s technical perspective does not seem encouraging like the on-chain outlook. OM’s price has formed a bearish flag structure on the daily chart.
A bearish flag is a continuation pattern that signals the resumption of a downtrend after a brief pause or consolidation.
It forms after a notable price drop (flagpole), followed by a slight upward or sideways consolidation (flag), before another move down.
In addition to that, the Bull Bear Power (BBP) reading has remained in the negative region. This indicates the dominance of sellers.
If this remains the same, OM’s price will likely fall below the support at $0.37. However, if bulls come into the picture, this trend might change, and OM might rise in the $2 direction.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
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