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Cryptocurrency Mantra plunges below half a dollar following large-scale selling by a significant investor; can OmiseGO find a way to rebound?
Whale moves are shaking up the cryptoverse as a big player deposited a hefty 2 million OM, worth $871K, into Binance, racking up a whopping $25.44 million loss from a previous 4 million OM withdrawal six weeks ago.
This drastic shift among the big players has local markets reeling.
Did Mantra's Plummeting Channel Lead to Despair?
OM'sPrice Action 📊 has painted a grim picture. At the moment, OM is trading at $0.4152, marking a steep drop of 4.93% over the last day. OM slipped out of a falling channel, which catapulted its dive from around $6 to barely over $0.50.
This dramatic collapse formed a sharp wick that hints at hasty liquidation during panicked sell-offs.
As for indicators, the RSI stands staunch at 17.22, deep in oversold territory, while the MACD histogram started showing positive signs. Despite these signs of exhaustion, a clear bullish catalyst is still missing from the scene.
📸 Source: TradingView
Any Fundamental Flaws??
While the technical picture paints a bleak outlook, fundamentals aren't doing much to help either. According to IntoTheBlock, all four of the core metrics—Net Network Growth, In-the-Money addresses, Whale Concentration, and Large Transactions—are showing bearish signals.
Adoption figures are low at 0.69%, and only -2.13% of holders are currently profitable. Concentration among big holders is dwindling at -0.05%, hinting at whales cashing out.
The biggest blow is the 11.29% dip in Large Transactions, pointing to a reduction in high-volume movements.
📸 Source: IntoTheBlock
What does MVRV and NVT suggest?
From a valuation standpoint, OM seems stuck between two extremes. The MVRV Z-score rests at a heavy -2.36, hinting at widespread unrealized losses and potential bottoming out. However, relying solely on MVRV can be risky without confirmation from price action or increased demand.
The NVT ratio has soared to 26.37, suggesting OM's market cap greatly outpaces on-chain activity. This signals an inflated valuation. In contrast, the Stock-to-Flow Ratio has slipped to 0.834, showing an abrupt shift in perceived scarcity and token circulation.
These conflicting indicators point to a market in limbo—trapped between speculation and fear, awaiting solid direction.
Is this the Bottom Line for OM, or is the Descent Far From Over?
Though OM shows exhaustion signs after the dip, sentiment remains bearish. The whale exit, weak on-chain activity, and valuation extremes leave investors question the token's future.
Without fresh demand or solid bullish factors like effective coin burn or accumulation, the path remains murky. Despite a potential short-term relief bounce, long-term recovery heavily relies on structural improvements and rebuilding investor confidence.
🔍 Fun Fact: Did you know OM's all-time high was $57.141? Now, spot OM prices at ~$0.472, representing a mind-boggling 95% plunge!
Survey Time! 💰 Fast Track to Win $500 USDTIs XRP Ready to Roar Again after Legal Victory?
- The whale deposit of 2 million OM into Binance caused a significant loss for the cryptocurrency, worth $871K, following a previous withdrawal of 4 million OM six weeks prior.
- Despite some technical indicators showing signs of exhaustion, a clear bullish catalyst is still missing for OM, causing investors' sentiments to remain bearish.
- From a valuation standpoint, OM seems to be grappling with overvaluation, as suggested by the NVT ratio, which indicates that the market cap outweighs on-chain activity.
- Large Transactions have decreased by 11.29%, hinting at a reduction in high-volume movements and possibly whales cashing out.
- The RSI stands at 17.22, deep in oversold territory, suggesting a potential oversell.
- The technology behind OM could serve as a catalyst for its recovery if it manages to effectively address investor concerns and rebuild confidence, leading to increased demand and long-term recovery.
