The RSI of the entire crypto market crossed the OB zone, causing the market to cool down. That was not the case with Fantom (FTM), as the altcoin had only just entered the bullish zone before being yanked back down.
As a result, the altcoin has dropped more than 14.66 percent in the last 24 hours, and its RSI has already entered the bearish zone.
FTM’s recovery is going to be considerably more tough from here on out than it was before. This was the company’s second failed attempt in the last two months to convert $1.8207 into support.
But the cryptocurrency isn’t only losing money in terms of pricing; it’s also losing money in terms of investors.
To begin with, there are just about 87k investors trading the altcoin on the network. Furthermore, those who were active contributed to some on-chain volume, but even those investors have been leaving since January.
Daily users on-chain are currently at 572, down from 3000 three months ago.
Naturally, the average daily volume of FTM traded on the exchange is less than $20 million.
This ‘lack of investor participation’ phenomena can now be explained in two ways.
The first is a lack of optimism, whereas the second is extreme optimism. i.e., investors are either losing faith in the coin or possessing far too much of it to HODL their FTM despite the coin losing so much value.
While the mean coin age suggests that HODLing is popular right now, investors’ sentiment suggests that there is some hesitancy.
Influencing a negative decision, on the other hand, isn’t as important. Furthermore, the same is likely to become positive shortly, indicating that the lack of involvement is due to a lack of confidence.
The HODLers (FTM holders of more than one year) balance has climbed from 23 percent to 39 percent since January, indicating that investors are willingly waiting for a successful advance to a new all-time high.
Related Posts – XRP Price Goes Up After Unexpected Reappearance On Coinbase
Disclaimer: The information provided is not trading advice, Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.