Mantra CEO Announces Token Burn Amid OM’s 88% Price Drop – A Strategic Play to Restore Confidence?

In a decisive response to OM token’s steep 88% decline, Mantra’s CEO has pledged to burn his personal holdings. This bold maneuver aims to signal commitment to the project’s long-term viability and reassure investors during turbulent market conditions. The token burn strategy, often employed to reduce circulating supply and theoretically support prices, raises questions about its effectiveness in restoring trust. Market analysts are divided on whether this represents genuine leadership accountability or a reactive measure to stem further losses. The move comes as the broader altcoin market faces significant volatility, with many projects exploring unconventional tactics to maintain investor confidence.

What do the price charts say?

Source: OM/USDT on TradingView

In short, nothing good. A 90% wipeout makes technical analysis difficult, as it erases the trend that has been building in recent months.

The rally from November was erased in a day, and the 27.2% extension level below the November low was tested. A drop below $0.364 appeared possible.

Source: Coinglass

The 3-day liquidation heatmap showed that there was a build-up of liquidity at $1, just above current market prices. OM would have to climb another 30% to test this liquidity region.

Source: Coinglass

The 24-hour heatmap highlighted the $0.72 and $0.82 as the nearby liquidation clusters. It was likely to test one, then sweep the other.

The order of this move was unclear, but the $0.82 was closer and hence more likely to be tested first.

Whether Mantra can recover from Sunday’s plunge remains to be seen. The community was shaken, but there is a chance that RWA investors would see this as an opportunity. DYOR is extremely important.

Sunday saw $5 billion in market cap wiped from Mantra, which brings into question whether this RWA ecosystem is worth that much, or whether a good chunk of it was vapor.

Investors might want to wait instead of FOMO buying.

Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion