Will Mantra (OM) Crypto Price Crash Another 90% in 2025?

The Mantra (OM) token is under intense scrutiny after its recent 90% crash, and technical patterns suggest the pain may not be over yet.

As of April 16, 2025, OM is forming a textbook bear pennant structure, a bearish continuation pattern that could result in another massive leg down. If the pattern confirms, OM risks plunging toward $0.05 — another 90% drop from current levels.

Bear Pennant Points to New Lows

On the 4-hour chart, OM’s rebound from the April 13 collapse is showing clear signs of exhaustion.

The token dropped from over $6 to as low as $0.37 in hours following mass liquidations and alleged insider activity. Since then, price action has consolidated in a narrowing triangle pattern — a classic bear pennant.

The pattern’s measured target, derived by projecting the flagpole’s height downward, lands near $0.053, representing a 90% decline from the current price of ~$0.77. 

Volume has steadily declined during the consolidation phase, suggesting weakening buying interest. The Relative Strength Index (RSI) remains deep in oversold territory, hovering near 17, with little sign of bullish divergence.

Unless bulls invalidate the pennant with a breakout above $0.90, the setup overwhelmingly favors further downside.

OM Token Burn Announcement Raises Eyebrows

In the wake of its dramatic price collapse, the Mantra team announced plans to burn 300 million OM tokens from its treasury this week — a move aimed at reducing the circulating supply and restoring investor confidence.

The burn represents a significant portion of OM’s total token allocation and is part of a broader “stabilization strategy” following the token’s over 90% drop on April 13.

Mantra framed the decision as a commitment to long-term value creation, suggesting that cutting excess supply would support a healthier market structure. However, critics argue that the move is more about damage control than genuine progress.

The bearish technical outlook aligns with mounting concerns over OM’s fundamentals and project transparency. Prominent analyst Maboo described the burn as a “desperate” attempt to fake momentum, noting that token destruction should not be a substitute for sustainable design.

“They launched with way too many tokens. Now they’re doing staged burns to fake momentum,” Maboo wrote. “If your tokenomics only make sense after destroying part of the supply… they never made sense to begin with.”

Maboo also pointed out that several on-chain investigators are uncovering “sketchy stuff” related to insider transactions, adding to the growing skepticism around the project. His conclusion? Mantra is giving “low-effort, high-risk vibes” — and remains a hard pass for risk-conscious investors.

Multiple on-chain investigators have reported suspicious activity around the crash, including wallets linked to strategic investor Laser Digital allegedly transferring millions of OM tokens to exchanges prior to the price collapse. Although Laser Digital denied involvement, the community remains skeptical.

Moreover, Mantra’s fully diluted valuation (FDV) — which stood near $1.88 billion as of April 15 — continues to draw criticism. Despite a modest rise in total value locked (TVL) to around $3.26 million, the mismatch between FDV and TVL has led to accusations that the project is overvalued and highly centralized.