Blockchain analysis firm Santiment stated that this altcoin, which has risen nearly 400% in the last seven days, should now enter a correction. Here is this altcoin and the developments you should watch out for.
Santiment pointed out that the number of active deposits of Shiba Inu (SHIB) is “extremely high,” a situation comment that signals a possible reversal in the future.
“Yellow flags start here. The extremely high active deposit indicates that this is likely a top forming.”
The crypto analytics firm says the inflow of SHIB to exchanges “although not very high” still hints that a reversal could be imminent.
“We would have expected to see it much higher, not too high. But it still shows the same thing, possibly a top forming.”
Santiment also says that SHIB traders’ profits are low, suggesting that investors are betting on the prank coin’s price going higher. The firm also warns that markets often “punish” this type of overconfidence.
According to the firm, “higher price increases are based on lower-profit sales. This could potentially indicate that investors have confidence that “there is no need to sell, it will go higher”. The market tends to punish this kind of trust.”
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