The price of Mantra's OM token remains under pressure

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

The price of Mantra (OM) tokens remains under pressure as recent attempts to rebound have faced substantial resistance.

OM was trading at $0.6575 on Tuesday, still down by over 99% from its all-time high of $9.10. Its market cap has also plunged from over $8.2 billion to $633 million.

Recently, there has been a huge volume of activity in the OM token as one exchange implemented large liquidations, pushing its price down by over 90% within a day.

One crypto analyst, who is followed by over 531,000 people on X, previously noted that insiders and investors have been dumping their OM tokens.

“Unbelievable scenes as MANTRA Chain’s response to a $5.5B market cap wipeout on one exchange is simply to announce they will burn millions of tokens and execute more buybacks.”

Some analysts advise against trying to invest in an asset that is in a bear market or trying to buy the dip unless there is a clear sign of a potential recovery.

In most cases, the initial recovery is known as a dead cat bounce (DCB). A DCB is when a falling asset experiences a brief recovery, which may mislead new investors, before resuming its decline.

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 (CEL), Voyager Digital (VGX), FTX Token (FTT), and Terra Luna (LUNA).

News data source: kdj.com

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