Investors in Shiba Inu are adopting a bearish outlook due to a series of sell-offs, which have put a stop to the meme coin’s upward momentum beyond the $0.000018 mark. The analytics platform Santiment has shared insights suggesting that this bearish trend might have positive implications for the Shiba Inu ecosystem.
Shiba Inu Investors Shift to Bearish Sentiment Amid Sell-offs
Shiba Inu investors are feeling bearish due to a wave of sell-offs impacting the cryptocurrency market. The broader market correction, led by the Bitcoin price decline, has resulted in a decrease in SHIB’s value. Data from IntoTheBlock indicates a surge in sell-offs within the Shiba Inu ecosystem, as large transactions for the meme coin lean towards bearish trends, suggesting that whales are offloading their holdings.
In a post on X, Santiment pointed out the shift in sentiment towards SHIB, as collective optimism has turned into skepticism about further upward movements. Nevertheless, the analytics platform suggested that this could actually be beneficial, highlighting Shiba Inu as one of the largest coins demonstrating the “best upside potential” for those buying into the crowd’s fear, uncertainty, and doubt (FUD).
They explained that the cryptocurrency market remains speculative, even among the top coins by market capitalization. Thus, markets often move contrary to public expectations. Therefore, the bearish outlook among Shiba Inu investors might yield “rewarding results” for those who dare to buy during the downturn.
Santiment previously noted that these coins frequently see notable rallies when market sentiment is bearish. Hence, amid these significant sell-offs, SHIB could witness a price spike that leaves skeptics in shock.
The analytics platform also identified other notable coins like Bitcoin, Dogecoin, Chainlink, XRP, and PEPE as having the best upside potential based on investor purchases amidst the crowd’s FUD.
SHIB’s Fundamentals Indicate a Potential Price Recovery
The fundamentals of Shiba Inu, including the coin’s burn rate and the increasing daily transactions on Shibarium, signal a potential rebound for SHIB. Data from Shibburn reveals that the Shiba Inu burn rate has surged by over 65,500% within the last 24 hours, with 2.6 million SHIB tokens being burnt during that time.
This spike coincides with the Shiba Inu team’s rollout of a novel SHIB burning mechanism through Shibarium. The WoofSwap team, responsible for the decentralized exchange (DEX) on Shibarium, elaborated that a new token called FEED will contribute to an increase in SHIB burns.
Additionally, the daily transactions on Shibarium are experiencing rapid growth, which is a bullish sign for Shiba Inu’s price. Shibariumscan’s data shows that daily transactions have surged back into the millions, having mostly fluctuated between 10,000 and 20,000 throughout the year. On October 24, Shibarium reported 4.77 million daily transactions, marking its peak for the year.
As of this writing, the Shiba Inu price is around $0.000017, reflecting a decline of over 1% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
