Shiba Inu & Other Memecoins See 3,000% Spike In Volume: Good Sign For Rally?

On-chain data shows Shiba Inu (SHIB) and other memecoins in the sector have observed a sharp boost in their volumes alongside their rallies. These Memecoins Have Enjoyed 3,000% Average Volume Increase According to data from the on-chain analytics firm Santiment, the trading volume of the memecoins has shot up recently. The “trading volume” here refers to the total amount of a given cryptocurrency involved in trading activities on the various spot exchanges in the sector. When the value of this metric is high, it means that the asset in question is observing a large amount of trades right now. Such a trend implies that the interest around the coin is high among the investors. Related Reading: CryptoQuants Bitcoin Bull-Bear Indicator Flags Price As Overheated On the other hand, the low indicator suggests that investors may not pay too much attention to the cryptocurrency as they are not making trades. Now, here is a chart that shows the trend in the trading volume for four different memecoins: Shiba Inu, Pepe (PEPE), FLOKI (FLOKI), and Bonk (BONK). Looks like the value of the metric has been quite high for all of these coins recently | Source: Santiment on X As displayed in the above graph, the Bitcoin trading volume for all four of these memecoins has surged to high levels recently as their prices have gone through a rally. Santiment notes that, on average, the trading volume across Shiba Inu, FLOKI, Pepe, and Bonk has increased by more than 3,000% over the past week. This would imply that crowd interest in these assets has witnessed a significant uplift. Generally, it’s not surprising to see the volume jump alongside price surges, as such sharp price action is attractive to investors, so they tend to make more moves in such periods. For any rally to be sustainable, it must keep attracting fresh volume. This is because moves like these require a large amount of fuel to keep going, which they can only get if more and more interest comes into the asset. Sometimes rallies start sharp, but fail to amass any appreciable volume, so, predictably die off before too long. As the volume of Shiba Inu and others has rocketed up recently, at least their current rallies shouldn’t face an issue like this. Related Reading: Bitcoin Safe From Drops Under $60,300? On-Chain Data Says So Now, while the trading volume can be something that can help rallies stretch longer, a high volume itself doesn’t imply a bullish prediction. This is because the volume can also spike during a selloff, as the indicator merely keeps track of the activity and not whether said activity is buying or selling dominated. As such, all that can be said about the implications of the current high trading volume on the prices of Shiba Inu and the company is that they should likely continue to see high volatility in either direction in the coming days. Shiba Inu Price Shiba Inu has enjoyed an extraordinary run of more than 180% in the past week, which has taken its price to the $0.00002746 mark. The price of the asset appears to have been sharply going up recently | Source: SHIBUSD on TradingView Featured image from iStock.com, Santiment.net, chart from TradingView.com

View Details

Here Are The Factors Driving The Shiba Inu Recovery Above $0.00001

Shiba Inu (SHIB) is on a roll, having again broken above the crucial $0.00001 resistance level. This recent price surge from the meme coin is believed to be propelled by several factors that undoubtedly provide a bullish narrative for the crypto token.  Burn Rate Contributes To The Shiba Inu Rise Data from the burn tracking website Shibburn shows that SHIBs burn rate has increased exponentially as of late, contributing to the meme coins latest price surge. According to Shibburn, almost 103 million SHIB tokens have burned in the last 24 hours, a 1913% increase from the previous day.  Related Reading: Crypto Analyst Sounds Warning Alarm: Last Chance To Buy Bitcoin And Ethereum Before Bull Run This is a welcome development, considering that Bitcoinist reported a crash in the SHIB token burns a week ago, with only about 2 million SHIB tokens burned on February 20. As such, a spike in the token burns automatically sends a bullish signal across the ecosystem. Token burning is one of the initiatives the SHIB community has adopted to help increase SHIBs value. Meanwhile, the recent petition launched by the SHIB community urging Grayscale Investments to offer a Shiba Inu ETF is another factor that could be driving the meme coins bullish momentum. Although it seems like a reach, the possibility of launching an ETF that centres around the meme coin is one that provides optimism to SHIB investors.  Moreover, the impact that just rumours about an ETF launch could have on the crypto token in question has become evident, having seen how Bitcoin rose significantly on the back of reports that a Spot Bitcoin ETF would be approved.  Investors Are Betting More On SHIB Data from Coinglass shows that the open interest for SHIB has increased in the last 24 hours. This is significant as the derivatives market is known to impact a crypto tokens price discovery. The increase in open interest also suggests that traders are likely placing more bullish leveraged bets on the meme coin. Related Reading: Bitcoin Spot ETF Inflows Eye New Record As BTC Price Touches $57,000 This increased interest in the Shiba Inu ecosystem is not surprising, considering how much work the team continues to put in to ensure that the crypto token stands out as more than a meme coin. Earlier this month, they secured a strategic partnership with K9 Finance, a liquid staking derivatives (LSD) platform.  This move will ultimately benefit SHIB as more token burns are expected to be carried out due to increased trading activity on Shibarium. More liquidity is also likely to flow into the ecosystem soon enough as K9 Finance recently announced its token generation event, which will take place on March 7.  At the time of writing, SHIB is trading at around $0.00001075, up over 5% in the last 24 hours, according to data from CoinMarketCap.  SHIB price showing strength at $0.000011 | Source: SHIBUSD on Tradingview.com Featured image from CryptoRank, chart from Tradingview.com

View Details

Shiba Inu Sees 10% Pullback, But Here’s Why Rally Can Still Continue

Shiba Inu has gone down 10% since hitting a local top two days ago. But here are some metrics that suggest the rally could still continue. Shiba Inu On-Chain Metrics Have Seen Positive Developments Recently Shiba Inu had been stuck in a perpetual sideways trend during most of July, but the meme coin’s fate switched [...]

The post Shiba Inu Sees 10% Pullback, But Here’s Why Rally Can Still Continue appeared first on Crypto Breaking News.

View Details