The price of Mantra’s OM token remains under pressure as recent attempts to rebound have faced substantial resistance. The OM token was trading at $0.6575, down by over 99% from its all-time high of $9.10. Its market cap has plunged from over $8.2 billion to $633 million.
Initiatives Have Failed to Boost OM Price
In an attempt to boost the token price, Mantra’s team has sought to reassure the market about its ecosystem. Its investigation accused one exchange of implementing large liquidations that have pushed its price down by over 90% within a day.
Some analysts, including Arkham, accused Mantra’s insiders and investors of dumping their tokens, allegations they denied.
In response, the management announced that they would burn millions of tokens and execute more buybacks. Burning tokens means moving them to an inaccessible wallet. A buyback is where a team uses its treasury to repurchase tokens in the open market.
The goal is to boost the confidence of the token among the investing community by reducing the amount of tokens in circulation.
A dramatic token crash experienced by Mantra may prompt some retail investors to consider buying the dip, hoping the token will recover over time.
Experts, however, advise against trying to invest in a declining asset unless there is a clear sign of a potential recovery. In most cases, the initial recovery, like the one that occurred on Tuesday and Wednesday, is known as a dead cat bounce (DCB).
A dead cat bounce (DCB) is when a falling asset experiences a brief recovery, often misleading inexperienced investors, before resuming its decline.
Mantra Price Has Formed a Risky Pattern
In Mantra’s case, there are signs that it is even forming a bearish pennant chart pattern, a popular continuation sign. This pattern is made up of a long vertical line and a symmetrical triangle. The pattern suggests the OM price may continue to decline in the coming weeks.
However, it may experience some short-term increases, a common occurrence among many ‘dead’ coins like Celsius, Voyager Digital, FTX Token (FTT), and Terra Luna.
