While most altcoins in the market right now are witnessing a drop in price as a result of the excessive bullishness we have witnessed in recent days, there are a few that found themselves in the crossfire before they could even end their bull run, one of which they to be fantastic.
Fantom hit… Again
The overall crypto market’s RSI broke through the OB zone, resulting in the market cooling. That was not the case with Fantom, however, as the altcoin had barely scratched into the bullish zone before being tossed back down.
As a result, the altcoin has lost more than 14.66% in the past 24 hours, and the RSI is already in bearish zone.
Recovery for FTM is going to be much harder from now on than it already was. In the past two months, this was the second attempt to flip $1,8207 into support, which failed.
But it’s not just in terms of price that the altcoin fails, when it comes to investors, FTM isn’t performing very well either.
First, the network barely has 87k investors trading the altcoin. In addition, those who were active contributed some volume on-chain, but as of January, even those investors have disappeared.
Down from 3k three months ago, daily users in the chain are just 572 as of today.
Of course, the total volume of FTM traded through the chain also averages less than $20 million.
There are now two ways in which this phenomenon of ‘lack of investor participation’ can be explained.
First, the absence of optimism, and second, excessive optimism. that is, investors are either losing faith in the coin, or they have a bit too much of it to HODL their FTM despite the coin losing so much money.
While the average age of the coins indicates that HODLing sentiment is quite strong right now, looking at investor sentiment seems to be hesitant.
However, it is not so important to influence a negative decision. Moreover, the same may soon turn positive, which would be an indication that the lack of participation is caused by trust.
Further support for this is the distribution of supply among FTM holders, where the balance of HODLers (FTM holders over a year) has risen from 23% to 39% since January, demonstrating that investors are voluntarily waiting for a successful rally for a new all-time high.
This post Bad Volumes For HODLer Belief – Why Fantom [FTM] has fallen behind
was published first on https://ambcrypto.com/poor-volumes-to-hodler-conviction-why-fantom-ftm-has-been-falling-behind/