Cryptocurrency analytics company Santiment has analyzed Shiba Inu (SHIB), which has seen a significant increase in volatility recently. According to the company’s data, the price of SHIB rose
Cryptocurrency analytics company Santiment has analyzed Shiba Inu (SHIB), which has seen a significant increase in volatility recently. According to the company’s data, the price of SHIB rose by 37 percent in two days, but quickly gave back some of its gains.
Santiment reported that social media interest in Shiba Inu also increased significantly during the rally. SHIB’s social dominance reached 0.084%, its highest level since April 2nd. However, the company noted that investor interest peaked during a period when price movement began to weaken.
The chart shows the increase in SHIB price. On-chain data also indicated that large investors may have viewed the rise as a selling opportunity. 52 whale transactions occurred in SHIB in a single day, the highest daily level recorded since March 31st.
According to Santiment, the increase in whale transactions suggests that large investors may have reduced their SHIB positions by realizing profits as the price rose. In contrast, individual investors are believed to have entered the market later.
The company stated that the surge in social media interest following the sharp rise indicates that small investors bought under the FOMO (Fear of Missing Out) effect as the price approached its peak. This may have provided whales with the necessary liquidity to reduce their positions.
*This is not investment advice.
Continue Reading: Why Did the Shiba Inu (SHIB) Price Suddenly Spike? What Will Happen Next?
