Mantra Incident: 5.4 Billion USD Loss Causes LUNA-style Panic of Terra

The cryptocurrency market faced a major shock when MANTRA (OM) plunged more than 90% in just one day, which has been compared to the infamous collapse of Terra LUNA. But what is even more worrying is that OM is not showing any signs of a recovery. When LUNA collapsed in 2022, some buyers rushed in, hoping to make quick profits as the price fell. This at least helped LUNA recover a bit in the short term. But with OM, that did not happen. It was stuck under heavy selling pressure and the technical chart showed little interest from buyers. In simple terms, it seems that most traders are currently staying away, waiting to see what happens next. Until buying interest returns or something changes, OM is likely to continue to fall.

From a Technical Perspective, No Buyers Are Interested OM is currently hovering around $0.60 after falling from over $6 last week, wiping out $5.4 billion in value and causing panic among traders. Today, it has dropped 24% as the team tries to calm the chaos. Technically, the Relative Strength Index (RSI) of OM has sharply declined throughout the drop, falling from 45 to a shocking level of 4 before slightly rising to around 10.85. While values below 30 typically indicate an oversold asset and attract buyers looking for a rebound, OM's RSI has been hovering near the bottom for several hours. This mainly indicates that the market simply is not stepping in to support the price, even after such a sharp decline. This is a clear reflection of the collapse in trader confidence and recovery seems very unlikely without a significant change in sentiment. Weak Blinking Indicator Adding to the bearish scenario is the OM's (DMI) Directional Movement Index. The ADX, which measures trend strength, stands at 47.23, much higher than the level of 25 that usually signals strong momentum. Unfortunately for OM, that momentum is on the downside. -DI, which tracks selling pressure, remained at a high of 69.69, while +DI, which signifies buying power, fell to just 2.42. This imbalance underscores how biased market sentiment is at the moment. Even if the panic sell-off eases slightly, buyers are still nowhere to be seen. The charts do not show any meaningful support, and unless there is a surprising catalyst, OM may continue to fall or remain stagnant for an extended period. Currently, the technical structure of OM is being compared with the worst moments of the collapse of LUNA, only this time the absence of speculative recovery interest makes it look even more fragile. The way forward remains uncertain, but one thing is clear: OM remains firmly in the danger zone.