SHIB Soars 118% in a Week, Hits Year High

In A Nutshell

Shiba Inu (SHIB), the renowned meme coin, recently experienced a surge in value, marking a significant rally that brought unseen levels of profitability to its holders. This increase, notably evident over the last week, was propelled by the activity of large-scale investors, commonly known as whales, and an awakening of coins that had been dormant for over a year. The implications of these movements, both in terms of individual wealth and the broader cryptocurrency market, are profound, suggesting a heightened interest and potentially speculative behavior in the SHIB ecosystem.

Shiba Inu’s Profitable Leap

Shiba Inu’s value escalated by 118% within a week, reaching a peak not observed since May 2022, according to data from CoinMarketCap. This price jump significantly benefited SHIB holders, with the average unrealized profit exceeding 31%, an analysis by AMBCrypto, based on Santiment’s data, revealed. This development is part of a broader market rally that saw substantial gains across many high-cap and mid-cap digital assets.

The Role of Whales

The surge in SHIB’s value did not go unnoticed by wealthy investors. A notable event was the transfer of 365.36 billion SHIB tokens, valued at nearly $7.4 million, to the Binance exchange by a whale. This action is often interpreted as a precursor to selling, aimed at capitalizing on the price increase. The whale had acquired these tokens three months prior at a lower price, positioning for a profit of approximately $4.5 million. This event was part of a more significant trend on March 2, where whale transactions saw a dramatic increase, reaching a level of activity not seen since November 2021.

Dormant Supply Activation

Another key aspect of the recent SHIB rally was the activation of dormant coins. On March 2, about 22 trillion SHIB tokens, which had been inactive for over a year, were moved. This indicates a growing bullish sentiment towards SHIB, as holders who had been passive chose to engage with their assets amid the rally.

Entering the Extreme Greed Phase

The SHIB market has entered what is known as the “Extreme Greed” phase, as noted by AMBCrypto using Hyblock Capital’s data. This phase suggests a potential for further accumulation and price increases. The influence of such sentiment on the market’s direction is significant, as it could lead to more pronounced price movements in the short term.

Our Take

The recent activities in the Shiba Inu market, marked by significant whale transactions and the reactivation of dormant coins, signal a renewed interest in the meme coin. While the short-term gains for investors are apparent, this also highlights the speculative nature prevalent in the cryptocurrency market. The “Extreme Greed” phase, while indicative of potential further gains, warrants caution among investors. The cryptocurrency market is notoriously volatile, and such phases can swiftly shift due to various factors, including regulatory news or changes in investor sentiment. As always, investors should conduct thorough research and consider their risk tolerance when engaging in the cryptocurrency market.

Sources

– CoinMarketCap
– Santiment
– AMBCrypto