Rewards Hub MANTRA (OM) experienced a dramatic price crash of over 90% last Sunday (April 13th). While many initially suspected a "rug pull" event, similar to what happened with Luna and FTX, OM Founder JP Mullin attributes the massive sell-off to forced liquidations at an exchange, triggering a panic sell-off. While the exact cause of this 90% crash is still unconfirmed, this volatility presents significant trading opportunities.
We suggest that traders use smaller time frames, such as 1-hour or 15-minute charts, to identify more trading opportunities in this volatile situation.
Here are possible scenarios on the 15-minute chart:
Possible Scenarios
1. V-Shaped Recovery
If strong buying pressure emerges and quickly pushes the price back up to pre-crash levels, it could signal a V-shaped recovery. This would indicate that the market has absorbed the sell-off and buyers are back in control.
Pro Tips:
- Watch for large green candles with significant volume on the 15-minute chart, that rise above $0.89 or $1.0.
- Consider entering a long position on the breakout above key resistance levels ($0.89 & $1.0).
- Place a stop-loss order below a recent swing low to protect against a reversal.
2. Consolidation and Accumulation.
The price may consolidate in a range after the crash, as the market tries to find a new equilibrium. This consolidation phase could represent a period of accumulation, where buyers are slowly absorbing the remaining supply.
Pro Tips:
- Identify key support and resistance levels within the consolidation range, which is $0.89 to $0.73 or $1.0 to $0.55.
- Consider range-bound trading strategies, such as buying near support and selling near resistance.
- Alternatively, use Phemex Grid Bots to capitalize all the small price movement during the accumulation phase.
3. Further Decline
If the selling pressure continues or new negative information emerges, the price could decline further. This scenario would be characterized by continued large red candles and a lack of significant buying interest.
Pro Tips:
- Monitor key support levels ($0.73, $0.55 & $0.45); a break below these levels could trigger further selling.
- Consider exiting any long positions to avoid further losses.
- Be cautious about entering new long positions until a clear bottom has been established.
- Consider shorting opportunities if the price breaks down through significant support, but manage risk carefully.
Conclusion
The 90% crash in MANTRA (OM) has created a highly volatile trading environment. While the cause of the crash remains debated, the current market conditions offer substantial trading opportunities. By analyzing price action on smaller time frames, such as the 15-minute chart, and considering the scenarios outlined above, traders can potentially profit from both upward and downward price movements. However, it is crucial to exercise caution, manage risk effectively, and stay informed about any new developments related to MANTRA (OM).
Pro Tips:
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Disclaimer: This is NOT financial or investment advice. Please conduct your own research (DYOR). Phemex is not responsible, directly or indirectly, for any damage or loss incurred or claimed to be caused by or in association with the use of or reliance on any content, goods, or services mentioned in this article.
