Mantra has failed to take advantage of today’s market rally, erasing earlier gains due to continued negative sentiment.

Weeks after the collapse of the Mantra (OM) token, users are still seeking answers about what happened. On Friday, May 9, OM was down 2.09%, despite a broader market rally, trading at $0.3667 and erasing its earlier gains.

Earlier in the day, the token had climbed to a daily high of $0.3923, suggesting the potential for a breakout. However, it is now trading below both its 10-day and 20-day simple moving averages, which stand at $0.40614 and $0.4666, respectively.

If Mantra can reclaim and sustain those levels, it would signal a possible shift in momentum. For now, though, technical indicators and investor sentiment are weighing on the token, suggesting that a reversal is unlikely in the near term. Instead of a breakout, OM quickly retraced, continuing the steady decline that has persisted for weeks.

Investors still demand answers over Mantra’s 95% drop

The token’s slide has continued since the sharp collapse on April 13, when Mantra, a real-world asset token, suddenly lost 95% of its value. While the team initially blamed exchanges for liquidity mismanagement, online investigators have shared a different narrative.

Several on-chain sleuths, including Choze and Onchain Lens, highlighted large movements from Mantra’s wallets to exchanges. While not definitive proof of insider selling, many in the community believe that’s exactly what occurred.

Fueling further concern are allegations that the Mantra team controls up to 90% of the token’s supply. According to Onchain Lens, this level of control allowed the team to artificially pump OM’s price for months.

In response to the crash and growing scrutiny, CEO John Mullin pledged to burn 150 million staked OM tokens, a portion of the team’s holdings. With a circulating supply of 1.66 billion, the burn would account for just under 10% of the token’s total supply.