An analysis of the Santiment On-Chain Analytics Platform recently revealed the current sentiment in the Dogecoin (DOGE) and Shiba Inu (SHIB) ecosystems. This also provided insights into the future trajectory of these meme coins, as a rebound could be imminent.
Shiba Inu Investors Are Pessimistic About Meme Currency
On the market analysisSantiment pointed out that Shiba Inu investors are currently pessimistic about the meme coin. This is based on the level of Social discussion towards Shiba Inu, which has been “extremely low” since late July. This metric has reportedly declined throughout this year as the bearish outlook for Shiba Inu increases.
The analysis noted that this feeling of indifference and frustration among Shiba Inu Investors This is understandable, given how small retail traders are hastily dumping their SHIB holdings. Data Market intelligence platform IntoTheBlock also confirms that these retail investors are not as bullish as expected. Shiba Inu whales continue to account for nearly 60% of the meme coin’s supply.
Santiment said that unlike Dogecoin, Shiba Inu retail traders are showing “tremendous relief.” The accompanying chart showed that the percentage of supply held by wallets with less than 1 billion SHIB is at its lowest level since November 2022. The analysis claimed that this indicates a significant level of FUD occurring on the network, with Shiba Inu Whales holding the vast majority of the supply.
The bearish sentiment among these Shiba Inu investors could also be due to the coin’s underperformance this year. Santiment noted that the meme coin has “essentially functioned as an underperforming Dogecoin in 2024.” The 30-day average trading returns are down by about -1.1%. On the other hand, the long-term returns have dropped drastically to -31.7%.
This bearish outlook for Shiba Inu could change quite quickly as Bitcoin enjoys a bullish reversal. Data from IntoTheBlock shows a strong positive price correlation between the meme currency and the main crypto. As such, Shiba Inu is bullish whenever Bitcoin is.
Dogecoin Traders Remain Undecided About Their Next Move
Dogecoin Retail Traders Traders have reportedly remained undecided on the meme coin throughout this year. Wallets with less than a million DOGE hold about 11.8% of the coin’s supply, essentially the same level as at the beginning of the year. As such, Santiment noted that there is no sign of FOMO to suggest that these small traders are accumulate Dogecoin.
Meanwhile, although Dogecoin has benefited from the hype around Tron meme coins In August, this was not reflected in its price. Since then, the ratio of DOGE discussions to all cryptocurrency discussions has fallen to 1.28%. Sentiment is in balance, which Santiment says is a good sign that FOMO has quickly subsided. The analysis added that if impatience and FUD come next, it would be a good sign of a turn around.
Featured image created with Dall.E, chart by Tradingview.com
