Shiba Inu (SHIB) has recently experienced a notable surge, reflecting the broader optimism sweeping the cryptocurrency market. This upward trend coincides with Bitcoin’s impressive rise above $63,000.
Shiba Inu has a blast during daytime hours
Memecoin has witnessed significant gains, including a solid 61% rise in 24 hours, an even more impressive 124% rise in a week, and a stellar 50% growth over the past month.
Source: Coingecko
In particular, SHIB has recorded a 10% rise since February, finally entering positive territory in 2023. In addition, the market capitalization also exceeded $8.5 billion for the first time in one year.
This bullish momentum is further strengthened by technical indicators. The recent price rise above $0.000014 reignited investor interest, as evidenced by a 75% surge in trading volume. This suggests a potential breakaway from the previous consolidation phase and could signal further upward movement if buying pressure persists.
SHIB seven-day price rally. Source: Coingecko
Market Strength and Bull Run Potential
The overall market capitalization of cryptocurrencies is approaching $2.5 trillion, a significant milestone. The rise has sparked speculation among some analysts about a possible bull market, a period of sustained price increases. Although past performance is no guarantee of future results, this increase in market capitalization signals that investor confidence has been restored.
Bitcoin is now trading at $61.970. Chart: TradingView.com
These highly volatile assets have experienced explosive price surges, potentially contributing to a positive feedback loop within the broader market. This “meme coin frenzy” could be a sign of increased participation by retail investors, which could be a double-edged sword, pushing prices higher but also increasing volatility.
SHIB investor sentiment
An interesting technical indicator is the improving sentiment in Shiba Inu (SHIB). Data shows that more than 50% of SHIB holders are currently making a profit, compared to just 10% in September 2022. This change reflects the positive impact of recent price increases and could further add to buying pressure if the trend continues.
changing tide
Meanwhile, Lookonchain’s on-chain data indicates that large investors, commonly referred to as “whales,” have made strategic changes to their holdings. The whale liquidated nearly 2 trillion PEPE tokens, generating a profit of $3.5 million. The sale suggests that whales have recognized PEPE as either nearing its price peak or no longer aligned with their investment objectives.
After selling PEPE, Whale reinvested a portion of the $893,000 into Shiba Inu (SHIB). The strategic allocation of 76 billion SHIB tokens suggests that whales are anticipating potential growth in the SHIB price. However, it is important to remember that this is a single instance.
Featured image from Pexels, chart from TradingView
Disclaimer: This article is provided for educational purposes only. This does not represent NewsBTC’s opinion on whether to buy, sell or hold any investment, and of course investing carries risks. We recommend that you do your own research before making any investment decisions. Your use of the information provided on this website is entirely at your own risk.