Exploring the Current Market Sentiment for Dogecoin and Shiba Inu 🌐
An examination by an on-chain analytics company recently uncovered sentiments surrounding the Dogecoin (DOGE) and Shiba Inu (SHIB) ecosystems. This analysis offers valuable insights into potential future movements for these meme coins, indicating that a rebound may soon be on the horizon.
Shiba Inu Investors Show Pessimism 🤔
According to the analysis, investor sentiment among Shiba Inu holders has shifted decidedly to the negative side. Social engagement related to Shiba Inu has been alarmingly low since late July. This trend indicates a waning public interest, which has been on the decline throughout this year, leading to an increasing pessimistic outlook for the coin.
The research further points out that feelings of indifference and dissatisfaction among Shiba Inu investors are justified. Many smaller retail investors have been swiftly selling off their SHIB assets. Data sourced from a market intelligence platform corroborates this shift, revealing that these retail participants appear less optimistic than anticipated. Interestingly, large holders, or whales, continue to control nearly 60% of the overall Shiba Inu supply.
In stark contrast to Dogecoin, Shiba Inu’s retail investors are reportedly experiencing a sense of “tremendous relief”. According to the analysis, the proportion of tokens held by wallets containing less than 1 billion SHIB has reached its lowest point since November 2022. This indicates a significant wave of Fear, Uncertainty, and Doubt (FUD) affecting the network. As a result, Shiba Inu’s large holders dominate the supply landscape.
Shiba Inu’s disappointing performance in 2024 may partly explain this bearish stance. Analysts highlighted that the meme coin has “underperformed” compared to Dogecoin this year. The average trading returns for Shiba Inu over the past month have dipped to around -1.1%. Moreover, long-term returns have plummeted dramatically, recording a decline of about -31.7%.
Nonetheless, Shiba Inu’s future outlook could improve, especially if Bitcoin experiences a bullish turn. Evidence shows a strong positive correlation in price movements between Shiba Inu and Bitcoin. Therefore, any bullish trend in Bitcoin could potentially uplift Shiba Inu as well.
Dogecoin Investors Remain Hesitant 🤷♂️
In contrast, Dogecoin investors appear to be grappling with uncertainty regarding their next steps throughout this year. Data indicates that wallets holding under 1 million DOGE account for approximately 11.8% of the cryptocurrency’s total supply, a figure that has remained relatively stable since the start of the year. This trend suggests that there isn’t any discernible sign of Fear of Missing Out (FOMO), indicating that smaller traders are not currently accumulating Dogecoin.
Despite the buzz surrounding meme coins connected to the Tron network in August, Dogecoin’s price failed to reflect this excitement. Since then, the ratio of Dogecoin-related discussions compared to overall crypto conversations has decreased to 1.28%. Sentiment analysis shows that the market currently stands at break-even, signifying a swift decline in FOMO. However, if impatience and FUD begin to surface, it may signal an impending turnaround for Dogecoin.
Hot Take on the Present State of Meme Coins 🚀
In summary, the current landscape for Shiba Inu and Dogecoin reflects significant investor sentiment and market dynamics. While Shiba Inu faces a skeptical outlook fueled by reduced social interactions and declining performance, Dogecoin traders exhibit reluctance to make decisive moves. The intertwined relationship between these meme coins and major cryptocurrencies like Bitcoin may offer insights into future market behaviors. Observe market shifts closely as they unfold to understand the potential for recovery and growth.
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