- $OM token dropped nearly 95% after technical analysis predicted its peak.
- A clear top formation signaled a potential downturn in $OM’s price.
- Despite the drop $OM’s price remains above earlier lows, offering hope for recovery
Plummeting almost 95% in value, the $OM token remained a curious case for investors and traders alike. After an impressive initial rally, the token fell fast-tracking to a tale of caution. This heavy price drop has raised issues among investors and traders, with most soaring in confusion on how this steep fall really came to play. The tokens were heavily dumped in April 2025, right after Anup Dhungana, a crypto analyst, had warned about a potential top formation.
Red Lights Before the Fall
The sharp depreciation of $OM token went on to confirm a series of warnings that suggested an impending decline. In February 2025, Anup Dhungana gave an alert to members of his Telegram channel about a possible top formation on $OM. It was then that the token was testing a crucial resistance level. According to his technical analysis, this level, when tested, could potentially trigger a sharp-scale correction on that token. The downward thrust was now in effect when $OM token hit high at $8.3699 and declined very sharply.
This was a classic top formation that was highlighted in the technical charts. Top formation is a special nomenclature in the technical arena where an asset goes through a steep lifting price range, reaches the peak, and goes through a steep declining price. Such a sequence would essentially mark the end of bullishness and the commencement of bearishness. As $OM tested its resistance levels, market sentiment shifted for the sell-off en masse, causing price to be slashed down.
An Overview of Price Journey- From Peak Straight Down
The price of $OM tokens had peaked by late 2024 at $8.3699 but the cheer for the token was short-lived. By April 2025, the price of $OM plummeted to $0.4690, down by almost 95%- a decline that set ripples through the crypto community. Investors buying near the peak were hurt the most. Thus, the majority of traders now are probably doubting their trades and are thinking of the unfortunate missed warnings.
This steep price reversal affected not only the retail trader but also the long-holders questioning whether the recent drop was just a mere speed bump in the road or a moon signal on the end of $OM’s market rally. While above its 2021 lows, the extent of the fall has created doubt as to whether or not $OM can rebound back to previous highs.
Resistance Levels And Technical Indicators In Action
Resistance levels aptly assist market experts in predicting price movements. Before the sharp fall, the $OM token hit one such resistance area climatically. Such resistance zones are being monitored closely by traders and technical analysts to formulate an idea of the area an asset might struggle to break through. Such an important resistance area in this scenario painted according to the $OM price was staring at a major reversal.
Apart from the show of resistance, the chart also included some downtrodden trendlines, lending credence to the anticipated price drop reinforced. When the market came to this very level, it was a festival of profit-taking leading to gigantic sell-offs; and in the end-from $8.3699, it collapsed to $0.4690. Thus, the behavior of the market confirmed it.
