On chain data provider Santiment team shared their assessment of Shiba Inu (SHIB) rally this week on Twitter. Meme coin has reached its highest price in four months, up 370% to date and continues to climb. At the time of writing, SHIB was trading at $0.00002971, up 31.28% daily. However, the meme coin is still down 25.23% from its ATH of $0.0000388. Although SHIB climbed up to 13th in the CoinMarketCap ranking, it was ranked 17th with a market value of 12 billion dollars at the time of writing. The cryptocurrency reached an enormous trading volume of $19 billion in a 24-hour time frame. For details of the Santiment report cryptocoin.com keep reading.
Meme coin keeps climbing
Santiment provides on chain data of SHIB and active addresses, number of whale transactions, deposits, foreign currency inflow, etc. He shared an update on how the cryptocurrency achieved its surprising rise using metrics. In general, they believe that a price peak may occur. There are several signs that suggest this for the Shiba Inu. The Santiment team believes that there may be an upper price for the meme coin in general, based on a few signs:
The ShibaInu continues to climb. For now, the 4-month high is $0.00003117, and it has posted an astonishing 3-day return of 258%. Read our update on where prices will go next, based on Currency In and Out, Active Addresses and Deposits, Whale Transactions and more.
What do the metrics say for SHIB?
According to the Santiment report, SHIB active addresses are at a “crazy peak”. In the report, it is stated that up to 4,500 active addresses are detected per day and the activity does not decrease to 100-200 addresses. The analysis team sees this as a sign that the SHIB rally is based on a fundamental reason. According to the Santiment team, the meme coin is currently among the top five most used cryptocurrencies on Ethereum. On the other hand, no information is given about who and why the Shiba Inu is used so actively.
Commenting on the Santiment data, Crypto analyst Yuri Molchan says that the currency outflows are not terrific, noting that withdrawals at these levels are generally good for a cryptocurrency. According to Santiment experts, Active Deposits with a yellow flag are too high as it may indicate a peak in the price of SHIB and this may indicate that a price peak has occurred for SHIB. In addition, the report shows that foreign currency inflows are not very high.
Whale trades point to ‘high risk, low reward’
Santiment says there are more yellow flags for cryptocurrency in the amount of transactions handled by SHIB whales. According to previously published Santiment research, this is because the number of whale transactions often coincides with a local top price for a cryptocurrency. Overall in the report, Santiment warns that the current situation with the Shiba token could mean “high risk, low reward.”
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