SHIB whale trades rose to a three-month high. Sentiment needs to improve for the token to continue its upward movement.

During the July 7 intraday trading session, Shiba Inu [SHIB] recorded 14 separate whale trades, each worth more than $1 million, pushing the alt’s price up 8% since then.

Read Shiba Inus [SHIB] Price Forecast 2023-24

According to data from Santiment, this increase in whale transactions represented the highest daily number of similar transactions in more than three months.

As these whales intensified trading activity, the number of unique SHIB tokens in circulation rose to a three-week high.

Source: Sentiment

Will SHIB holders soon have a reason to smile?

When the amount of a token in circulation grows in this way, it often suggests the presence of positive market sentiment, capable of attracting more trading activity. This can drive up the price of the token. However, in the case of SHIB, market sentiment remained poor.

According to data from Santiment, the alt’s weighted sentiment rested below the mid-0 line at -0.888 at the time of writing. This statistic has been negative since May, indicating the general lack of interest in trading or holding SHIB tokens for long periods of time.

The entry of the token’s weighted sentiment into negative territory in May coincided with SHIB no longer being a profitable venture. Data from Santiment showed that the alt’s market value to realized value (MVRV) ratio turned negative on May 7 and has remained flat ever since. At the time of going to press this was -58.38%.

Source: Sentiment

A negative MVRV reading indicated that the SHIB had been “undervalued” for the past three months. This meant that if all SHIB tokens were sold at the current price, most traders would realize losses on their investments.

Realistic or not, here is SHIB’s market cap in BTC terms

In addition, SHIB has experienced a decline in its networking and social activities over the past month. If this trend continues, it could pose a challenge to increase the value of the token. There is a correlation between a token’s network activity and price performance. In the past month, the daily active addresses have decreased sharply. Social dominance and volume have also declined and remained in their down trending positions at the time of writing.

Source: Sentiment

Social activity must improve for SHIB’s price to continue on this weekend’s upward trajectory. Similarly, new liquidity should come to the market through increased network activity.

This post How whales sparked the Shiba Inu’s bullish frenzy this weekend

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