Mantra’s OM Token Faces Severe Bearish Sentiment Amid 90% Crash and Extreme Oversold Conditions

• The recent collapse of MANTRA’s OM token has left traders reeling, with a staggering 90% loss triggering concerns similar to last year’s crypto downturns.

• Furthermore, the token’s Relative Strength Index (RSI) stubbornly remains near historical lows, indicating extreme oversold conditions.

• According to analysts from COINOTAG, the persistent bearish trend suggests MANTRA lacks real on-chain value, raising doubts about any near-term recovery.

This article discusses the recent catastrophic decline in MANTRA’s OM token, analyzing key indicators and market sentiment that point toward ongoing bearish trends.

OM RSI Plummets to Historic Lows

In the wake of MANTRA’s dramatic plunge, traders are scanning the market for potential opportunities amid the chaos. However, the technical indicators portray a grim picture for the OM token.

The Relative Strength Index (RSI) has witnessed an alarming drop from previously stable levels of 45 down to just 10.85, underscoring the extent of the sell-off. This indicator is crucial as it helps quantify the asset’s momentum and identifies potential reversals.

Despite a minor recovery effort, the RSI signifies a lack of buying support that typically fuels recovery momentum, indicating that sentiment toward OM is overwhelmingly negative. The absence of buyers suggests that many traders are avoiding the token in anticipation of further declines, paired with a hesitancy to invest even at these heavily discounted rates.

COINOTAG analysts emphasize that without a catalyst to shift market sentiment, the outlook for a turnaround in the OM token remains bleak. Traders appear to lack confidence, resulting in an extended bearish phase.

Mantra’s DMI Reflects Lack of Buying Interest

Turning to the Directional Movement Index (DMI), the metrics paint a stark tableau of current market conditions. The Average Directional Index (ADX) currently stands at 47.23, illustrating a robust downward trend that shows little sign of relenting.

The -DI (negative directional indicator), which reflects selling pressure, has receded from 85.29 down to a still formidable 69.69. Despite this decrease, selling pressure continues to dominate the market.

Conversely, the +DI (positive directional indicator), which represents buying pressure, has dropped significantly from 3.12 to a meager 2.42, showcasing a troubling lack of bullish engagement. This imbalance suggests that traders are either too wary or unconvinced of OM’s potential to rebound.

As the DMI indicates a consistent pattern of strong selling momentum and negligible buying activity, the prospect of a recovery for MANTRA’s OM token appears exceedingly dim. Without a substantial shift in market dynamics or improved sentiment, continued bearish pressure seems inevitable.

Conclusion

The recent 90% crash of MANTRA’s OM token underscores a significant market shift, driven by extreme oversold conditions and a lack of buying interest as reflected in both the RSI and DMI indicators. Unless sentiment drastically changes, traders might find themselves in a prolonged period of uncertainty as they await clearer signals for recovery. The current outlook calls for vigilance, with potential risks outweighing foreseeable opportunities amid market turmoil.