Yesterday, the digital currency Mantra (OM) experienced an unprecedented crash, losing over 90% of its value. The downward trend continues, with analysts warning that the technical status of this cryptocurrency appears even more dire than the famous plunge of Terra Luna (LUNA) in 2022. The Relative Strength Index (RSI), indicating price momentum, plummeted from 45 to 4, currently only at 10.85. While an RSI below 30 indicates ‘oversold’ conditions, reaching 10.85 signals critical conditions for Mantra, discouraging buyers from entering the market. On the other hand, the Directional Movement Index (DMI) also depicts critical conditions, standing at 47.23, significantly higher than the usual 25. This situation reflects a strong downward trend. Despite the -DI (selling pressure indicator) decreasing from 85.29 to 69.69, selling pressure remains very high. Conversely, the +DI (buying pressure indicator) decreased from 3.12 to 2.42, indicating a lack of demand for buying. This severe imbalance between sellers and buyers suggests that despite the possibility of the end of the intense selling phase, no significant buying momentum has emerged to support the price. Some analysts have warned that the Mantra project may lack real intrinsic value. As long as this unstable structure (strong downward trend, high selling pressure, and lack of buyers) persists, Mantra is likely to remain exposed to heavy downward pressures. Any recovery attempt also seems highly unlikely without a significant change in market sentiments. At the time of writing this news, the OM token is trading around $0.6.
