Why Shiba Inu prices may be contrary to public sentiment

Coin World reported:
During the market adjustment, Shiba Inu (SHIB) has seen significant emotional fluctuations and an increase in the number of holders, suggesting potential bullish activity.
Amid the continued downturn in the cryptocurrency and stock market industry, Shiba Inu is identified as a potential outlier according to recent analysis by Santiment.
Despite speculation that the earlier, broader market bull run may be waning, SHIB has shown significant upward potential.
Specifically, after a prolonged period of optimism, the market sentiment has shifted, with traders expressing doubts.
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 still possess a high degree of speculation, even for mature projects like Shiba Inu. It emphasizes that historically, the market often moves in the opposite direction of popular expectations.
As the general market sentiment becomes cautious and bearish, Santiment points out that this pattern may provide opportunities for investors who resist following the mainstream trend.
For example, Shiba Inu’s 1-day sentiment 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 slightly below $0.000017.
This increased negative sentiment weakened Shiba Inu’s 7-day sentiment, which currently stands 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 decreased by 5.23%, indicating that traders may approach these rapid emotional changes cautiously.
Negative sentiment in the cryptocurrency market
Shiba Inu’s volatility coincides with a broader negative sentiment trend in the cryptocurrency market. Other notable projects, such as ChainLink (LINK), Bitcoin (BTC), and Dogecoin (DOGE), also experienced significant drops in 1-day sentiment.
ChainLink dropped by -371.73%, while Bitcoin and Dogecoin declined by -226.24% and -157.81% respectively. Even popular meme coins like Pepe also did not escape, with Pepe’s 1-day sentiment plummeting by -574.71%.
This widespread negative signal suggests that many traders may anticipate further downside risks, although Santiment’s research findings indicate that such bearish sentiment sometimes leads to opposite market trends.
Inflows indicate strategic accumulation
In stark contrast to the negative crowd sentiment, Shiba Inu has shown strong activity among major shareholders. In the past 90 days, there has been a significant increase of 554.88% in the influx of large holders, indicating ongoing accumulation and preparation for potential upward movement.
The 30-day change also reflects a significant growth of 163.23%, further suggesting that major holders may be strategically positioning themselves for future price trends.
It is worth noting that even in the short term, the 7-day inflow has increased by +1.29%, indicating stable interest from large investors.