Mantra (OM) Hits Critical Resistance: Will it Break or Break Down?

Mantra's on the edge of a knife, folks! This key resistance level could be the make-or-break moment for OM in the coming weeks.

After weeks of relentless drops, Mantra (OM) is finally flashing signs of a comeback. On Monday, May 12, OM was trading at $0.4384, up a modest 0.48% in the last 24 hours. But here's the kicker: it hit a daily high of $0.467, soaring past that crucial resistance level at $0.45 before pulling back.

The bounce back came hot on the heels of an explosive weekend. On Sunday, May 11, OM skyrocketed 40% from $0.37 to a weekly peak of $0.52. That surge smashed through the 20-day simple moving average hovering around $0.45.

Even though OM couldn't stay above that resistance level, it's still holding steady above the $0.38 support. And get this: the relative strength index is sitting at 23 points, screaming that it might be slightly oversold.

Can Mantra Bounce Back?

Despite the recent buzz, Mantra's long-term outlook is still looking gloomy. OM is lurking below both the 20-day EMA at $0.51 and the 50-day EMA at $0.74. These key indicators are waving red flags, signaling some serious bearish momentum, especially after the recent drama.

Remember that wild ride on April 13? Mantra plummeted a staggering 95% in just a few hours. The CEO tried to pin it on exchange liquidations, but some sleuths are crying foul, pointing fingers at possible insider selling and market manipulation.

The Mantra team's been scrambling to win back trust. The CEO made a bold move, promising to burn his entire stash of 150 million tokens—nearly 10% of the total supply. But the token burn, wrapped up on April 29, barely moved the needle. Since then, OM's taken a dive from $0.53 to a low of $0.4145.