While at the moment, most of the altcoins in the market are witnessing a drop in price due to the excessive bullishness witnessed over the last couple of days, there are some that got caught in the crossfire even before they could finish their bull run, one of them being Fantom.
Fantom hit… Again
The total crypto market’s RSI breached the OB zone, which resulted in the market cooldown. However, that was not the case with Fantom since the altcoin had barely scratched into the bullish zone before being thrown back down.
As a result, the altcoin lost over 14.66% in the last 24 hours, and its RSI is already in the bearish zone.
Recovery for FTM from here on is gonna get much more difficult than it already was. In the last two months, this was its second attempt at flipping $1.8207 into support which failed.
But it’s not just in terms of price that the altcoin is failing, when it comes to investors, FTM isn’t performing very well either.
Firstly, the network barely has 87k investors trading the altcoin. On top of that, those that were active contributed to some volume on-chain, but since January, even those investors have been disappearing.
Down from 3k three months ago, daily users on-chain are at just 572 as of today.
Naturally, the total volume of FTM traded on the chain is also less than $20 million on average.
Now there are two ways that this ‘lack of investor participation’ phenomenon can be explained.
First being the absence of optimism and the second being excessive optimism. i.e., investors are either losing faith in the coin, or they have a little too much of it to HODL their FTM despite the coin losing so much money.
While the mean coin age indicates that the sentiment of HODLing is pretty strong right now, looking at investors’ sentiment, it seems like there is some hesitation in investors.
However, it isn’t as significant to influence a negative decision. Plus, the same is possibly going to turn positive soon, which would be an indication that the lack of participation is confidence induced.
Further backing this is the distribution of supply among FTM holders, where the HODLers (FTM holders of more than one year) balance has increased from 23% to 39% since January, which shows that investors are voluntarily waiting out for a successful rally for a new all-time high.