Mantra DAO (OM) Price Analysis: Can it Recover?
Mantra DAO's OM token recently suffered a 94% price crash, falling to $0.618 before a slight rebound. While currently trading at $0.618 (up 3.71% today), the question remains: can OM rebound significantly?
OM Price Prediction: Potential for Recovery?
The price decline appears to have found support around the weekly buy-side imbalance zone ($0.380-$0.540). Holding this zone could signal a bullish reversal. A 50% rebound from the lows would be substantial but pales in comparison to reaching the midpoint of the crash, which would require a 328% rally to $1.594.
Although a 328% rally seems ambitious, it's important to note OM has already bounced 65% from its bottom. The following charts show this action:
Factors Influencing Recovery
- Technical Indicators: Daily charts show oversold RSI and steep red histograms, suggesting the sell-off might be nearing an end.
- Transparency and Trust: The project's response to the crash is crucial. A clear explanation of the events, along with steps to prevent future incidents and measures to compensate affected investors, would be critical for regaining trust and potentially catalyzing a price recovery.
The Mantra DAO team has issued a statement attributing the crash to an incident during “low liquidity hours on Sunday” involving team members. They state that this was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens. More details are needed to fully assess the situation.
“To be clear, this dislocation was not caused by the team, the MANTRA Chain Association, its core advisors, or MANTRA’s investors selling tokens. Tokens remain locked and subject to the published vesting periods. OM’s tokenomics remain intact… Our token wallet addresses are online and visible.”
Further price action is needed before making definitive predictions, but the project's transparency and response will be key factors in determining whether a significant recovery is possible.
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