OM Price Prediction: Can Mantra Bounce Back After a 90% Crash?

Mantra Crypto Crash: Will It Rebound or Is the Collapse Just Beginning

The crypto market was also astir when Mantra (OM) token crashed over 90% within 2 days, reminiscent of the 2022 Terra LUNA demise. Investors were left stunned and without answers as the market value, more than $6 billion, was wiped out in less than 30 minutes. Now, the market would like to know: Can OM rise again, or has this just begun deeper in fall?

What Caused the OM Price Crash?

The daily time frame reveals a catastrophic break. The token decollated from above 6.00 to 0.60, sliced through the supply of support levels, and broke past important moving averages like the 20-day, 50-day, 100-day, and even the 200-day SMA- which is around 4.20 today.

Source: Trading View

The exact cause of the crash remains officially unknown, but perhaps a massive wave of selling and turns of unfortunate fundamental news seem to have triggered panic liquidation.

Technical Analysis: Is OM Oversold?

The Relative Strength Index (RSI) on the daily chart stands at a shockingly low figure of 15.39, indicating oversold conditions of extremes. Normally, such low RSI readings suggest that a short-term technical bounce would be on the horizon. 

Nonetheless, one must note the volume spike during the dump; it indicates strong bearish momentum. Hence, traders are cautioned not to engage until signs of stabilization or accumulation are favored by technical indicators.

Key Areas of Interest in Price Movement

The immediate price wave encompasses the weekly buy-side imbalance from $0.380 to $0.340. If the token maintains above this value zone, then recovery toward the $1.00 to $1.20 area can be highly imagined, marking an important psychological resistance threshold and possible area to take short-term profits from trades. 

Otherwise, unless OM hangs around that $2.00 mark with volumes attached to it, the longer-term bearish structure is likely to remain.

Long-Term Outlook: Will It Recover Fully? 

Recovery for the altcoin will depend heavily on two factors:

Regaining community trust and building investor confidence.

A positive update or fundamental turnaround from the team behind Mantra. Without strong catalysts, any rally might just be a dead-cat bounce. But if the team addresses the crash transparently and brings real utility to the forefront, the coin could stage a gradual recovery.

Should you buy this dip?

Some traders may be captivated by that incredible discount, but the altcoin remains firmly positioned in a very high-risk area. Unlike the LUNA collapse, where flashes of short-term bounce started to come through, OM hasn't even sniffed out any signs of meaningful reversal yet. Thus, caution and patience are advised before putting in any new positions. 

After the crash, is OM a buy?

Mantra has slipped into perilous waters. While technical indicators might, at best, suggest a short-term bounce, the overall sentiment tends to remain pretty bearish. A stable recovery can start only when the altcoin can hold key support zones again and perhaps regain some faith from its community.