Shiba Inu investors have recently adopted a bearish outlook in response to a significant wave of sell-offs that have temporarily paused the meme coin’s upward trajectory beyond the $0.000018 threshold. According to insights from the on-chain analytics platform, Santiment, this widespread bearish sentiment might actually present positive prospects for the Shiba Inu ecosystem.
Shiba Inu Investors React to Market Selloffs
The current bearish trend among Shiba Inu investors is largely a consequence of widespread sell-offs within the cryptocurrency market. A correction in the broader crypto landscape, which was spearheaded by fluctuations in Bitcoin’s price, has caused Shiba Inu (SHIB) to decline. Data from IntoTheBlock has underscored this trend, revealing that large transactions involving the meme coin are predominantly bearish, suggesting that major investors, or “whales,” are offloading their holdings.
In a recent post on social media platform X, Santiment further examined the bearish sentiment surrounding SHIB. The platform noted a shift in the community’s optimism, which has now turned to skepticism regarding any further upward movements. Yet, Santiment pointed out that this sentiment might actually benefit the Shiba Inu ecosystem. It emphasized that Shiba Inu remains one of the leading coins poised for substantial growth despite the current fear, uncertainty, and doubt (FUD) among investors.
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Understanding Market Psychology: A Potential Upside for Shiba Inu
The cryptocurrency market is inherently speculative, even for the most established coins by market capitalization. Market dynamics often defy the majority’s expectations, meaning that the prevailing bearish sentiment could result in rewarding outcomes for those ready to take advantage of the dip. Santiment has previously mentioned that cryptocurrencies often witness significant rallies when the market mood is bearish. Therefore, amidst the current massive sell-offs, Shiba Inu might experience a dramatic price surge, catching bearish investors off guard.
Additionally, Santiment highlighted other leading cryptocurrencies like Bitcoin, Dogecoin, Chainlink, XRP, and PEPE, which also show promising potential based on investor behaviors during periods of market FUD.
Fundamental Indicators Suggest a Price Rebound for SHIB
Several fundamental factors within the Shiba Inu ecosystem indicate the potential for a price rebound. Key among these is the meme coin’s burn rate and the increasing daily transactions on the Shibarium network. According to Shibburn data, the Shiba Inu burn rate has seen a remarkable increase of over 65,500% within the last 24 hours, with a total of 2.6 million SHIB tokens being burned during this timeframe.
This surge in burn rate coincides with the Shiba Inu team’s introduction of a novel SHIB burning strategy via Shibarium. The WoofSwap team, responsible for the decentralized exchange (DEX) on Shibarium, explained that the burning of SHIB will be enhanced through the minting of a new token named FEED.
Shibarium’s Rising Activity: A Bullish Signal
The rise in daily transactions on Shibarium further strengthens the bullish outlook for Shiba Inu’s price. Data from Shibariumscan reveals that daily transactions on the network have returned to the millions, after previously fluctuating between 10,000 and 20,000 for much of this year. Notably, on October 24, Shibarium recorded an impressive 4.77 million daily transactions, marking its highest level for the year.
As of the time of writing, Shiba Inu’s price hovers around $0.000017, reflecting a slight decline of over 1% in the past 24 hours, based on CoinMarketCap data. Despite this minor setback, the underlying fundamentals and market sentiment suggest potential for a strong recovery.
