OM Price Plummets: Mantra DAO's Troubled Outlook

Mantra DAO's OM token has experienced a significant price drop, plummeting over 12% in a single day to trade at $0.2516. This continues a downward trend that began in early April, erasing months of gains and leaving the token far below its previous high of over $8.

Concerning On-Chain Indicators

• Large Transaction Volume has declined by 24.34%, suggesting weakening institutional participation.
• A staggering 91% of OM holders are currently experiencing losses.
• Short positions are accumulating near the $0.25 mark.

Technical indicators such as the Parabolic SAR and Stochastic RSI show no clear bullish signals, raising concerns about the token's future. The price is currently consolidating within a tight range with low volume and momentum.

Source: TradingView

Retail Investor Exodus

While whale addresses increased their holdings by 2% over the past 30 days, indicating some conviction, retail and mid-tier investors have significantly reduced their positions, with holdings dropping 7.56% and 4.33% respectively. This increased centralization could stifle broader community engagement and hinder recovery efforts.

Source: IntoTheBlock

IntoTheBlock data confirms this weakness, showing a significant drop in large transaction volume. This decline in large transactions during a price drop usually points to eroding confidence among major players.

New Addresses: A False Dawn?

Although new addresses increased by 18.6% last week, the number of active addresses only grew by 0.44%. This disparity suggests many new wallets are inactive or speculative, rather than indicative of genuine engagement. The fact that zero-balance addresses dropped by 17% suggests that some older users may be leaving the ecosystem entirely.

Source: IntoTheBlock

91% of Holders Underwater

A concerning 91.91% of OM holders are currently holding at a loss. This significant percentage of underwater investors could trigger further sell-offs if the price experiences even a modest rebound, creating substantial overhead resistance. The concentration of losses between $0.28 and $0.76 highlights the depth of the problem.

Source: IntoTheBlock

Short Sellers Near $0.25

Short positions are building just above $0.2517, with increasing short liquidation leverage. This imbalance suggests a market heavily skewed towards bearish sentiment. While a potential short squeeze is possible if the price unexpectedly spikes, buying pressure is currently absent, and short sellers appear to be firmly in control.

Source: CoinGlass

Conclusion: A Bleak Outlook for OM?

The data points to a weak overall picture for OM, encompassing price, volume, and on-chain participation. While whales maintain a significant presence, the lack of new demand and the substantial number of investors holding substantial losses make a recovery challenging. Without a significant improvement in market sentiment and underlying fundamentals, OM may experience further price declines.