Shiba Inu & Other Memecoins See 3,000% Spike In Volume: Good Sign For Rally?
04 Marzo 2024 - 1:00PM
NEWSBTC
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:
CryptoQuant’s 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
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