An in-depth analysis by the on-chain analytics platform Santiment has recently shed light on the prevailing sentiments within the Dogecoin (DOGE) and Shiba Inu (SHIB) ecosystems. These insights provide a clearer picture of the potential future movements of these popular meme coins, suggesting that a rebound might be on the horizon.
Shiba Inu Investors: Bearish Sentiment Prevails
According to the market analysis conducted by Santiment, Shiba Inu investors currently hold a bearish outlook on the meme coin. This sentiment is largely influenced by the level of social discussions surrounding Shiba Inu, which has been markedly low since late July. Throughout the year, this metric has continued to decline, reflecting a growing bearish sentiment towards Shiba Inu.
The analysis further highlights that this prevailing feeling of indifference and frustration among Shiba Inu investors is not unwarranted. Smaller retail traders have been rapidly offloading their SHIB holdings. Data from the market intelligence platform IntoTheBlock corroborates this finding, indicating that retail investors are not as optimistic as one might expect. Despite this, Shiba Inu whales still hold a significant portion of the coin’s supply, accounting for almost 60%.
Santiment’s report contrasts Shiba Inu’s situation with that of Dogecoin, noting that Shiba Inu’s retail traders are experiencing “tremendous relief.” The data reveals that the percentage of supply held by wallets with less than 1 billion SHIB is at its lowest since November 2022, indicating a high level of fear, uncertainty, and doubt (FUD) within the network.
The bearish sentiment among Shiba Inu investors could also be attributed to the coin’s underwhelming performance this year. Santiment pointed out that Shiba Inu has “essentially performed as a worse-performing Dogecoin in 2024.” The 30-day average trading returns are down by approximately -1.1%, while long-term returns have plummeted to -31.7%.
However, this bearish outlook for Shiba Inu might soon change as Bitcoin experiences a bullish reversal. Data from IntoTheBlock shows a strong positive price correlation between Shiba Inu and Bitcoin, suggesting that Shiba Inu tends to be bullish whenever Bitcoin is.
Dogecoin Traders: Indecision Dominates
On the other hand, Dogecoin retail traders have remained undecided about their next moves throughout the year. Wallets holding less than 1 million DOGE constitute about 11.8% of the coin’s supply, a figure that has remained largely unchanged since the beginning of the year. Santiment noted that there are no signs of fear of missing out (FOMO) among these small traders, indicating a lack of significant accumulation of Dogecoin.
Even though Dogecoin benefitted from the hype surrounding Tron meme coins in August, this did not translate into a notable price increase. Since then, the ratio of DOGE-related discussions to overall crypto discussions has dropped to 1.28%. The sentiment is currently at break-even, which Santiment interprets as a positive sign that FOMO has subsided quickly. The analysis suggests that if impatience and FUD take over next, it could signal a potential turnaround for Dogecoin.
In conclusion, while Shiba Inu investors remain bearish due to the coin’s underperformance and the dominance of whales, Dogecoin traders are currently indecisive, showing no significant signs of accumulation. However, both meme coins could see a reversal in fortunes, particularly if Bitcoin’s bullish trend continues. Investors and traders should closely monitor these developments to make informed decisions.
