As a seasoned analyst with over two decades of experience in the financial markets, I have seen my fair share of bull and bear markets, booms and busts. The latest analysis by Santiment on Dogecoin (DOGE) and Shiba Inu (SHIB) has piqued my interest, and here’s why.
According to a recent examination conducted by the on-chain analysis platform Santiment, the prevailing sentiment within the Dogecoin (DOGE) and Shiba Inu (SHIB) communities has been revealed. This analysis sheds light on potential future trends for these meme coins, suggesting that a resurgence might be impending.
Shiba Inu Investors Are Bearish On The Meme Coin
According to Santiment’s market analysis, investors in Shiba Inu are feeling quite pessimistic about the meme coin. This gloomy sentiment is reflected in the minimal chatter surrounding Shiba Inu since late July. This particular metric has been consistently low this year, mirroring the increasing bearishness towards Shiba Inu.
It’s not surprising that some Shiba Inu investors are feeling apathetic and frustrated, given that smaller traders have been quickly selling their SHIB tokens. To back this up, data from market intelligence platform IntoTheBlock shows a lower-than-anticipated enthusiasm among retail investors. Moreover, it’s worth noting that whales (large investors) hold nearly 60% of the meme coin’s total supply.
As a researcher, I’ve found some intriguing insights regarding Shiba Inu (SHIB). Unlike Dogecoin, retail traders in the SHIB community appear to be experiencing “substantial relief.” This is based on the observation that the proportion of SHIB held by wallets with less than 1 billion SHIB has reached its lowest point since November 2022. This trend suggests a high level of fear, uncertainty, and doubt (FUD) within the network, as a large portion of the SHIB supply is being controlled by ‘whales.’
The bearish sentiment among these Shiba Inu investors could also be due to the coin’s underperformance this year. Santiment remarked that the meme coin has “essentially performed as a worse-performing Dogecoin in 2024.” The 30-day average trading returns are down at around -1.1%. On the other hand, the long-term returns have declined drastically to -31.7%.
The pessimistic view about Shiba Inu might shift rapidly if Bitcoin undergoes a bullish turnaround. It’s worth noting that Shiba Inu tends to follow Bitcoin’s trend, as suggested by the data from IntoTheBlock. Therefore, when Bitcoin is on an upward trajectory, so is likely Shiba Inu.
Dogecoin Traders Remain Undecided About Their Next Move
2021 has seen a consistent hesitation among small-scale Dogecoin investors regarding the meme currency, with wallets containing less than 1 million DOGE holding approximately 11.8% of the total coin supply – a figure unchanged since the start of the year. This stability in ownership suggests that there is no evidence of panic buying (FOMO) among these traders, according to Santiment’s analysis.
Despite Dogecoin gaining attention from the buzz surrounding Tron meme coins in August, its price didn’t seem to follow suit. Since then, conversations about Dogecoin compared to all cryptocurrency discussions have decreased to 1.28%. The sentiment is currently neutral, which Santiment points out as a positive sign that the fear of missing out (FOMO) has subsided quickly. If there’s an increase in impatience or fear, uncertainty, and doubt (FUD), it could signal a potential change in direction.
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2024-09-12 21:41