Shiba Inu, the popular meme coin, has experienced a significant rally of 34%. However, there are concerns that this rally may be driven by FOMO (Fear Of Missing Out) among investors.
Analytics firm Santiment has analyzed various indicators related to Shiba Inu during its recent price surge. Three key on-chain metrics have been observed: Volume, Circulation, and Whale Transaction Count. The Volume metric tracks the total amount of SHIB being traded on major exchanges, indicating investors’ trading interest in the coin. Circulation measures the total number of unique tokens participating in transactions on the network, reflecting overall activity. The Whale Transaction Count indicates the number of high-value transactions executed on the Shiba Inu network daily.
These metrics have shown a sharp increase alongside the price surge, suggesting a spike in overall activity on the network. Increased activity is usually a positive sign during rallies, as it indicates growing investor interest and fuel for price appreciation. However, Santiment cautions that the recent surge in SHIB metrics may be excessive, potentially indicating traders’ excessive excitement. The firm also notes a simultaneous spike in social media discussions related to the coin, further suggesting FOMO among investors.
Considering the historical unpredictability of cryptocurrency markets, such high levels of hype could potentially signal a top or a reversal in the price trend. Santiment advises traders to wait for the bullish narratives to calm down slightly before expecting Shiba Inu to surpass its previous year-high.
As of now, Shiba Inu has continued its upward momentum with a 14% increase within the last 24 hours, surpassing the $0.0000195 level.