The Technical Chart of MANTRA Looks Worse Than the Collapse of Terra LUNA

Yesterday, MANTRA (OM) experienced an astonishing fall of 90%, and it continues to decline today. Notably, the charts and indicators of OM look as bad as the collapse of Terra LUNA in 2022, if not worse.

The RSI of OM is hovering near the extreme oversold level, and the indicators show almost no buying activity. When LUNA collapsed, many traders bought in to profit short-term. However, this seems unfeasible with MANTRA, based on the current charts. OM RSI Reached Below 10 After falling more than 90% in just a few hours, some traders may be targeting the OM token of MANTRA as a “buy the dip” opportunity. However, the Relative Strength Index (RSI) tells a different story—RSI of OM has fallen from 45 to 4 during the collapse and has only slightly recovered to 10.85. RSI is a momentum indicator that measures the speed and change of price movements on a scale from 0 to 100. Typically, values below 30 indicate oversold conditions, while levels above 70 indicate that the asset is overbought.

Although it has risen from extreme lows, the RSI of OM still fluctuates around 10.85 for several hours, indicating that very few buyers are participating to support the price. The lack of subsequent buying pressure indicates that sentiment remains very negative, and traders are not confident enough to accumulate tokens—even at this significantly lower price. Recently, when speaking with BeInCrypto, analysts have warned about the potential lack of real value on the chain of Mantra. OM may be preparing for another fall or a prolonged stagnation as the market awaits a clearer catalyst or recovery signal. Mantra DMI Shows Buying Activity Almost Non-Existent The DMI chart (Directional Movement Index) of Mantra clearly shows strong bearish momentum. The ADX, which measures the strength of a trend regardless of direction, is currently at 47.23—well above the threshold of 25 and showing no signs of weakening. -DI, monitoring selling pressure, has fallen from a peak of 85.29 to 69.69, indicating that although the panic sell-off may be slowing down, it still prevails. Meanwhile, +DI, measuring buying pressure, has fallen from 3.12 down to just 2.42, highlighting the lack of positive response to the collapse.

This imbalance indicates that although the immediate sell-off may have passed, there is hardly any significant buying activity to support the price of OM. The fact that +DI is still extremely low indicates that traders are still staying away from the token, hesitant to buy even after the significant price drop. As long as this momentum continues—strong trend strength, high selling pressure, and buying pressure being almost non-existent—OM is likely to continue facing strong downward pressure, with any recovery efforts being extremely unlikely unless sentiment changes significantly.