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Mantra (OM) has struggled to capitalize on today’s broader cryptocurrency market rally, erasing earlier gains as negative sentiment continues to loom over the token. Weeks after its dramatic collapse, users are still searching for answers regarding the events that led to its sharp decline. On May 9, OM experienced a 2.09% drop, trading at $0.3667, despite the overall market showing signs of recovery.

OM Fails to Sustain Momentum Amid Market Rally

Earlier in the day, the Mantra token climbed to a daily high of $0.3923, sparking hopes of a potential breakout. However, it has since retraced, now trading below its key 10-day and 20-day simple moving averages of $0.40614 and $0.4666, respectively. This indicates that the token remains under significant selling pressure.

For a meaningful recovery, OM would need to reclaim and sustain these critical moving average levels. Until then, technical indicators and prevailing investor sentiment suggest that a reversal in the near term is unlikely. Instead of building on its earlier gains, the token continues a downward trajectory that has persisted for weeks.

Mantra’s 95% Collapse Raises Questions

The sustained decline follows a sharp crash on April 13, when Mantra lost an astonishing 95% of its value in a single day. As a real-world asset token, this collapse has raised significant concerns within the crypto community. While the project’s team initially pointed fingers at exchanges for liquidity mismanagement, online analysts have offered alternative explanations.

Prominent on-chain investigators have flagged large token transfers from Mantra’s wallets to exchanges. Although this activity does not conclusively prove insider selling, many community members suspect that such actions contributed to the token’s collapse. These allegations have further eroded trust in the project.

Concerns Over Token Supply Control

Adding to the skepticism are claims that the Mantra team controls up to 90% of the token’s total supply. According to on-chain data, this level of control may have enabled the team to artificially inflate OM’s price over several months. Such allegations have only intensified scrutiny and cast doubt on the token’s long-term viability.

Burning Tokens to Regain Trust

In response to the growing backlash, Mantra CEO John Mullin announced plans to burn 150 million staked OM tokens, which represent a portion of the team’s holdings. With a circulating supply of 1.66 billion tokens, this burn would account for just under 10% of the total supply. While this measure aims to restore investor confidence, it remains to be seen whether it will be enough to reverse the negative sentiment surrounding the project.

As the situation unfolds, investors continue to monitor the token closely, looking for signs of stabilization or further declines. For now, Mantra faces significant challenges in regaining the trust of its community and rebuilding momentum in an increasingly competitive cryptocurrency market.

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