Mantra [OM] has experienced a drastic 95% decline, plummeting below $0.32 from its peak above $6 in March. This sharp downturn was triggered by a structural breakdown and widespread market capitulation. The subsequent consolidation in a low-volume zone has left the Relative Strength Index (RSI) at 25, indicating oversold conditions with weak price action and a lack of bullish momentum.
Despite the increase in user activity, including new addresses and active wallets, derivatives data reflects indecision and failed recovery attempts. Large holders, or whales, have been exiting the market, leading to a 129% drop in netflows over the past 30 days and a significant decline over the last 90 days, signaling long-term distribution. While there was a brief spike in net inflows recently, whales have not shown sustained accumulation, suggesting a lack of confidence in OM’s immediate recovery.
On-chain data reveals that the majority of OM holders, 93.77%, are currently underwater, creating substantial overhead resistance. Most investors are trapped between $0.32 and $5, making it challenging for any bullish momentum to overcome the sell pressure from loss-averse holders. The concentration of underwater supply just above the current price level further complicates breakout attempts, potentially suppressing upward price action unless the $0.40 region can be flipped into support.
The derivatives market reflects heightened volatility and uncertainty, with aggressive two-sided positioning leading to long liquidations totaling $457K and shorts being wiped out for $143K. The battle between bulls and bears has resulted in unstable price action, with no clear trend emerging. Without one side gaining control, OM could remain rangebound.
While retail address activity is on the rise and some whales are showing signs of accumulation, sentiment alone may not be enough to drive a sustainable recovery for OM. The structural breakdown, weak whale support, and significant underwater holder base all point to continued downside risk. Unless higher resistance levels can be reclaimed and holder losses reduced, a full reversal may be difficult to achieve.
In conclusion, despite the increase in retail engagement and optimism in the market, OM’s outlook remains uncertain amidst structural challenges and whale-driven downside pressure. Additional institutional or whale support may be necessary to power a sustainable recovery for the cryptocurrency. The COVID-19 pandemic has brought unprecedented challenges to the world, impacting every aspect of our lives. As countries around the globe continue to battle the virus and its variants, it is essential for individuals to stay informed and take necessary precautions to protect themselves and others.
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