A man analyzes cryptocurrency graphs on a touchscreen monitor in a modern office setting. What to do when crypto market crashes

When a coin like MANTRA (OM) suddenly drops over 90% in an hour, it can feel like the sky is falling. Your portfolio bleeds red, panic kicks in, and every instinct screams, “SELL!” — or worse, “BUY THE DIP!” without a plan. What now…when crypto market crashes?

If you’re new to crypto, you’re not alone. Market crashes are scary, but they’re also part of the game. Here’s how to stay safe, stay sane, and survive — even thrive — during high-volatility moments like these.

🚨 1. Don’t React Emotionally

I followed OM Mantra coin crash keenly—on crypto exchanges, crypto news, and X. I even published a market update article moments after the crash. On Binance, investors were down. One traded reported losing $15M in the Mantra crash.

What happens when crypto market crashes?

Your wallet is not a place for emotional decision-making. Fear and greed are the two monsters that eat up new investors.

What to do:

  • Step back. Zoom out. Check the weekly/monthly chart.
  • Breathe. One crash doesn’t define the token or your financial future.
  • Avoid FOMO and avoid panic-selling. These are the traps that lead to real losses.

📊 2. Understand What Happened

Was it a rug pull, market-wide sell-off, insider activity, or just natural volatility? In MANTRA’s case, large insider movements paired with strong technical rejection points triggered the drop.

Ask:

  • Was there a major announcement?
  • Are whales dumping?
  • Is it just one token, or is the whole market red?

Knowing why can help you make smarter moves.

📉 3. Read the Charts, Not the Noise

You don’t need to be a pro trader to recognize warning signs. Look at support and resistance, volume spikes, and key levels like the MA (Moving Averages). MANTRA dropped below all major MAs — that’s a red flag.

Mantra ($OM) token price chart, OM token meltdown, what to do when crypto market crashes
OM Mantra token price chart, Source: Binance

Tip for beginners:

  • Use basic tools like RSI and MACD to spot oversold or overbought conditions.
  • Volume tells the truth — high volume during a drop = panic; low volume = fading momentum.

💼 4. Have a Plan BEFORE You Buy

This is crucial. Most people buy without knowing:

  • Why they’re buying
  • When they’ll sell
  • What they’ll do if it drops 20% or more

Before you click “Buy,” know:

  • Your entry point
  • Your stop-loss (how much you’re willing to risk)
  • Your exit point (your profit goal)

No plan = emotional chaos = loss.

Learn 8 Things You Need to Consider Before Investing

🪙 5. Diversify. Don’t Marry a Token.

Don’t put all your funds into one token — not even if your friend swears it’s “the next big thing.”
MANTRA looked strong for weeks — then dropped like a rock. It happens.
Rule of thumb:

  • Spread your risk across sectors (DeFi, AI, L1s, stablecoins).
  • Don’t tie your net worth to one moonshot.

🧠 6. Use Crashes as Learning Moments

Every crash is painful — but it’s also a masterclass in:

  • How the market behaves
  • What panic looks like
  • How strong or weak a project really is under pressure

Review the chart. Note what led to the drop. Next time, you’ll spot it earlier.

🛑 7. Stop Catching Falling Knives

Buying during a crash “because it’s cheap now” is risky. Wait for confirmation:

  • Signs of consolidation
  • Reclaiming support levels
  • Indicators turning bullish

Let the knife hit the floor before you try to pick it up.

📚 8. Stay Educated, Not Hyped

(X) Twitter and Telegram groups are full of noise and hype. When crypto market crashes, they become even more chaotic.

During such times, cut the noise to avoid emotional damage.

Follow credible sources, watch charts, and learn from traders who teach risk management — not just post “rocket emojis.”

Use tools like:

  • TradingView for charts
  • CoinGecko/CoinMarketCap for data
  • YouTube/Discord for learning (but avoid pump groups)

🛟 9. It’s Okay to Sit Out

If things feel chaotic, don’t rush in. Sometimes the best move is to do nothing. You don’t always need to buy the dip. Sometimes, the dip keeps dipping.

Preserving capital is a win.

💡 10. Build Your Crypto Rules

Here’s a simple beginner’s rulebook:

✅ Never invest more than you can afford to lose
✅ Use stop-losses
✅ Take profit regularly — don’t wait for 100x
✅ Don’t trade when emotional
✅ Keep learning, always


When Crypto Market Crashes in Summary

Crashes are painful. But they’re also normal. MANTRA might recover. Or it might not. That’s the truth in crypto. What matters is how you react — not just what the market does.

Let every drop sharpen your instincts and strengthen your strategy. Because in crypto, only the educated and patient survive.

FURTHER READING:

OM MANTRA Coin Crash: What Really Happened and Why Investors Should Pay Close Attention

SB1797: Illinois Moves to Regulate Crypto and Protect Consumers with New Digital Assets Bill

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