Shiba Inu (SHIB), the world’s second largest memecoin, approached the 0.0000191 level with a 23 percent increase in the last 24 hours. This price rise was accompanied by a 240 percent increase in daily trading volume and is reminiscent of the great bull run of 2021.
The FOMO Effect is Back in Action
Crypto analytics platform Santiment reported that the Shiba Inu has surged a whopping 43 percent in the last nine days, and activity within the chain has increased. Key metrics behind this rally include strong trading volume, an increase in SHIB circulation, and SHIB whale transactions reaching 10-week highs.
Additionally, the increase in SHIB’s social dominance has strengthened the FOMO (fear of missing out) effect among investors.
Trading Volume and Derivative Data
Santiment data revealed that the sharp increase in the price of the Shiba Inu has the potential to lead to a local top. SHIB’s price is currently trading at $0.00001901 and it ranks 13th in the cryptocurrency market with a market cap of 11.3 billion. For SHIB’s price to reach the $0.000043 target in February, the bulls must push the price above $0.000020 and continue strong trading volumes.
Future Prospects
Derivative data for the world’s second-largest memecoin also shows strength; Open interest increased by 65 percent, reaching over 60 million dollars. Additionally, Shiba Inu’s 24-hour liquidations increased to 2.23 million, of which 1.29 million consisted of short position liquidations. A strong increase in the funding rate was observed in February, indicating a bullish trend among SHIB futures traders.
It is noted that if the bulls push the price of SHIB above $0.20, there is potential for an additional 100 percent rally in a few weeks. However, investors are curious about whether memecoin can repeat its 45,000 percent bull run in 2021.
The Shiba Inu ecosystem continued to move forward this week with the announcement of the launch of the SHI stablecoin. Additionally, the total value of assets locked (TVL) on the Layer 2 network Shibarium reached a new high of 3.64 million.
Shiba Inu’s recent price rise has shown a significant uptrend, with an increase in both trading volume and social interactions. These developments present investors with various scenarios about SHIB’s future performance.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
