Mantra (OM) has had a tough week as its price took a significant hit, falling by over 25% to a low of $0.8160 on Friday. This drop comes amidst a broader sell-off in altcoins like Ethereum, Solana, and Cardano.
Despite some positive news for the ecosystem, including being added to Swissborg’s Real World Asset (RWA) thematic basket, Mantra’s token continued to decline. The RWA basket includes other tokens like Synthetix Network, VeChain, Chainlink, Maker, and Polymesh Network. Swissborg, a major player in the crypto industry, has nearly 800,000 users and holds over $1.26 billion in assets.
On the bright side, Mantra’s assets have seen a significant increase in recent weeks, now totaling over $46.3 million, up from $7 million at the beginning of the year. The project has also expanded to the UAE, indicating its growth and expansion efforts.
With a market cap exceeding $650 million, Mantra is a key player in the tokenization sector, focusing on fractionalizing and tokenizing real-world assets (RWA). This industry is anticipated to grow to over $10 trillion in the coming years, highlighting the potential for projects like Mantra.
However, despite reaching a peak of $1.0960 earlier this month, the OM token has experienced a sharp decline of over 25% in the ongoing altcoin sell-off. It has fallen below the crucial support level at $1, which was its highest swing on June 5. Additionally, the token has dropped below the 50-day and 100-day moving averages, indicating a bearish trend.
Currently trading at $0.8095, the token’s inability to rise above this level since June 3 raises concerns. A further drop below this point could signal more downside potential, potentially leading to a decline to $0.7620. Bears seem to be gaining control, and the market sentiment remains cautious as investors brace for a possible bearish breakout in the near term.