Mantra’s OM (
The assurance calmed the OM token sell-off that had obliterated over $5 billion in market capitalization and
Analyst Ed further alleged that the Mantra team used their OM holdings as collateral to secure high-risk loans on a centralized exchange.
He noted that a sudden change in the platform’s loan risk parameters triggered a margin call, contributing to the token’s sharp decline.
Source:
OKX CEO Star Xu
This setup strongly mirrors LUNA’s post-crash behavior. After its sharp decline in May 2022, the price staged a brief recovery but failed to reclaim its 50-week and 200-week moving averages, triggering a deeper and more prolonged downtrend.
LUNA/USD weekly price chart. Source: TradingView
OM now faces mounting skepticism despite the temporary bounce, with chartist AmiCatCrypto saying that the Mantra token can plunge 90% within a day after rallying for 100 days.
“If you ask me if bull market is over. Short answer. YES,” she wrote, adding:
“Any gains from this point is considered bounces.”
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
