The total crypto market’s RSI breached the OB zone, causing the market to cool. But that was not the case with Fantom, as the altcoin had only just entered the bullish zone before being flipped back down.
As a result, the altcoin has lost more than 14.66 percent in the last 24 hours, and its RSI has already entered the bearish zone. From now on, FTM’s recovery will be much more difficult than it was previously. This was its second failed attempt in the last two months to convert $1.8207 into support.
But the altcoin isn’t just failing in terms of price; it’s also underperforming in terms of investor interest. To begin with, the network only has 87k investors trading the altcoin. Furthermore, those who were active contributed to some volume on-chain, but even those investors have been disappearing since January. Naturally, the average volume of FTM traded on the chain is less than $20 million.
There are two explanations for this ‘lack of investor participation’ phenomenon. The first is a lack of optimism, and the second is excessive optimism. i.e., investors are either losing faith in the coin or have too much of it to HODLers their FTM despite the coin losing so much money.
While the mean coin age suggests that HODLing sentiment is fairly strong right now, investors’ sentiment suggests that there is some hesitancy. This is supported by the distribution of supply among FTM holders, where the HODLers (FTM holders for more than a year) balance has increased from 23% to 39% since January, indicating that investors are willingly waiting for a successful rally to a new all-time high.
