About the mantra (If) The token presented a sharp rebound after putting 90% on the weekend, following an active response from the project team that responded to the allegations of a rug pull scam.
OM is bouncing 200% while co-founder responds to concerns
Until April 14th, OM traded as high as $ 1.10, almost 200% higher compared to post-crash less than $ 0.37 a day before.
OM/USDT Daily Price Chart. Source: Tradingview
The rebound came after Mantra met the mounting rug-pull allegations.
Co-founder JP Mullin has assured the community that the project remains active, pointing to the official Telegram group “still online.”
“We’re here and not going anywhere,” Mullin wrote, also sharing a verification address to prove the team’s OM token holdings. She is Related OM crashing on “reckless forced closure initiated by centralized exchanges.”
Source: JP Mullin
Certainly calm OM token Sell-off lost more than $ 5 billion in market capitalization and liquid $ 75.88 million worth of futures positions a day.
Many online commentators say the mantra team, reportedly controlling 90% of the token supply, the seller has been weak -suspected transfer of om to centralized exchanges themselves before the crash.
Source: Altcoingordon
Analyst Ed further said the mantra team used their OM Holdings as collateral to secure high-risk loans in a centralized exchange.
He noted that a sudden change in the platform’s loan risk parameters had a margin call, which contributed to the sharp decline of the token.
Source: Ed
The exchanges organize loan risk parameters to manage market volatility and protect themselves from potential disappointments due to collateral values. Centralized exchanges such as OKX changed their parameters after updating the mantra’s tokenomics in October 2024.
Notably, mantra Double The total supply of OM tokens from 888,888,888 to 1,777,777,777 this month. It further moved from a casualty to a non -trapped, inflationary model with an initial 8% annual inflation rate.
Source: WU BLOCKCHAIN
Okx CEO star xu Called Mantra is a “big scandal,” adding that it will release related reports about its crashing in the coming days.
Om Bounce can resemble Luna’s bull trap
The 200% OM rebounds from $ 0.37 low may look amazing, but its structure closely resembles a classic bull trap pattern visible to Luna debacle by Terra in May 2022.
The OM price crashed below the 50-week exponential transfer of average (50-week EMA; the red wave) supporting near $ 3.25 and now testing the resistance to 200-week EMA (the blue wave) around $ 1.08.
Om/USDT Weekly Price chart. Source: Tradingview
Meanwhile, the weekly KaMag -child of Om’s relative -child (Om (RSI) drops to 33.31, the signing of the weakening of momentum and increasing the risk of another deterioration.
Related: What is a rug pull in crypto and 6 ways to see it?
This setup strongly reflects the behavior of Luna’s post-crash. After its sharp decline in May 2022, the price presented a brief recovery but failed to capture the 50-week and 200-week moving averages, motivating a deeper and longer collapse.
Luna/USD Weekly Price chart. Source: Tradingview
Like Luna, OM is now facing doubt despite temporary bounce, with the chartist Amicatcrypto It is said that the mantra token can plunge 90% within a day after rally within 100 days.
“If you ask me when the bull market is over. Short answer. Yes,” he wrote, added:
“Any gains from this point are considered bounces.”
This article does not contain investment advice or recommendations. Every transfer of investment and trading involves risk, and readers should conduct their own research when deciding.
