As a seasoned researcher with years of experience in analyzing cryptocurrency markets, I find it fascinating to observe the dynamics at play with Shiba Inu (SHIB). The latest surge of 34% has indeed sparked a flurry of activity, as evidenced by the spike in volume, circulation, and whale transaction count.
The data indicates a significant increase in indicators concerning Shiba Inu, which coincides with its 34% rise. This could be an indication that fear of missing out (FOMO) might be emerging among the investors.
Shiba Inu Has Seen An Uptick In Activity With Its Latest Rally
Recently, Santiment’s latest analysis on platform X delves into the shifting trends of Shiba Inu’s key performance markers, as its value skyrocketed by an impressive 34% in just a week.
Here are three significant on-chain measures we’re focusing on: Daily Trade Volume, Total Supply, and Whale Transactions. The first one, Daily Trade Volume, monitors the total SHIB units traded across major exchanges daily, providing insights into investor activity levels for the coin. This statistic directly mirrors the level of enthusiasm among investors.
Circulation ties into action, but it’s not confined solely to exchanges. This measurement quantifies the overall count of distinct tokens of the asset involved in transactions on the network. When Volume surges without a parallel increase in this figure, it might suggest that the trading activity around the meme coin could be originating from wash trading.
The Whale Transaction Count measure represents the number of daily transactions over $1 million on the Shiba Inu network. Typically, these sizable transfers are conducted by “whale” entities, indicating the level of large-scale market players’ activity within the network.
Here’s a graph from the analytics company we mentioned earlier, displaying the progression of these three Shiba Inu on-chain indicators over the past couple of months:
The graph shows that all three indicators for Shiba Inu have significantly increased along with the recent price jump, indicating a surge in overall network activity. An increase in network activity is often positive during rallies as it suggests increased investor interest in the coin. This increased activity usually means more traders are entering the market, which can sustain price movements like this one.
The latest rise in the SHIB metrics, however, is a bit extreme, potentially indicating that traders are getting too excited too quickly. Santiment has also pointed out that social media discussions related to the coin have spiked at the same time, lending further credence to the fact that the investors are feeling FOMO.
Historically, cryptocurrency markets often go against the general consensus, meaning that if there’s an overwhelming level of excitement or hype among the public, it might signal a potential peak is approaching.
According to the analysis by the firm, for the 13th largest market capitalization to exceed its previous high of $0.000043 set in February, it may be wise for traders to hold off until the most optimistic market discussions experience a slight reduction.
SHIB Price
Over the past 24 hours, Shiba Inu’s price continued to climb by 14%, surpassing the value of $0.0000195.
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2024-09-28 05:10