Why Shiba Inu prices may contradict market sentiment

CoinWorld News Report:
During market adjustments, Shiba Inu (SHIB) has seen significant emotional fluctuations and an increase in the number of holders, suggesting potential bullish activity.
Amidst the continued downturn in the cryptocurrency and stock market industry,
Shiba Inu
is identified as a potential outlier according to a recent analysis by Santiment.
Despite speculation that the earlier widespread bull market may be fading, SHIB demonstrates significant upward potential.
Specifically, after a prolonged period of optimism,
the market sentiment has changed,
with traders expressing doubt.
As fear, uncertainty, and doubt (FUD) begin to dominate, Shiba Inu is becoming one of the promising projects, especially for those willing to challenge the broader bearish outlook.
Emotional changes and market reactions
Santiment’s analysis indicates that crypto assets remain highly speculative, even for mature projects like Shiba Inu. It emphasizes that historically, the market often moves in the opposite direction of public expectations.
As public market sentiment becomes cautious and bearish, Santiment points out that this pattern may provide opportunities for investors who resist following the mainstream trends.
For example, Shiba Inu’s 1-day sentiment has dropped by 719.81%, reflecting negative sentiment among investors. This decline occurred as Shiba Inu plummeted from a peak of $0.00001929 on Monday to just below $0.000017.
This increased negative sentiment has weakened Shiba Inu’s 7-day sentiment, currently at a positive change of 2827%. This change is even more pronounced over 30 days, with SHIB’s weighted sentiment at only 339.12%.
Despite significant emotional fluctuations, the 1-day trading volume has decreased by 5.23%, indicating cautiousness among traders towards these rapid emotional changes.
Negative sentiment in the cryptocurrency market
Shiba Inu’s volatility coincides with the broader negative sentiment trend in the cryptocurrency market. Other notable projects such as ChainLink (LINK),
Bitcoin
(Bitcoin, BTC), and Dogecoin (DOGE) have also experienced a significant decline in 1-day sentiment.
ChainLink has dropped by -371.73%, while Bitcoin and Dogecoin have fallen by -226.24% and -157.81% respectively. Even popular meme coins like Pepe have not been spared, with a 1-day sentiment plunge of -574.71%.
This widespread negative signal suggests that many traders may anticipate further downside risks, although Santiment’s research findings indicate that this bearish sentiment sometimes leads to opposite market trends.
Inflows indicate strategic accumulation
In stark contrast to the negative crowd sentiment, Shiba Inu has shown significant activity among major shareholders. In the past 90 days, there has been a substantial increase of 554.88% in the influx of holders, indicating continued accumulation and preparation for potential upward shifts by key participants.


Inflows of Shiba Inu’s major shareholders
The 30-day change also reflects a significant growth of 163.23%, further suggesting that large holders may be strategically positioning themselves for future price movements.
It is worth noting that even in the short term, the 7-day fund inflow has increased by +1.29%, indicating stable interest from large investors.