How whales triggered Shiba Inu’s bullish frenzy over the weekend

• SHIB whale transactions surged to a three-month high.
• Sentiment has to improve for the token to continue on its upward movement. 

During the intraday trading session on 7 July, Shiba Inu [SHIB] logged 14 separate whale transactions, each worth over $1 million, causing the alt’s price to jump by 8% since then. 

Read Shiba Inu’s [SHIB] Price Prediction 2023-24

According to data from Santiment, this surge in whale transactions represented the highest daily count of similar transactions in over three months. 

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

Source: Santiment

Will SHIB holders have a reason to smile soon?

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

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

The entry of the token’s weighted sentiment into the negative territory in May coincided with when holding SHIB stopped being a profitable enterprise. Data obtained from Santiment showed that the alt’s Market Value to Realised Value ratio (MVRV) turned negative on 7 May and has since remained the same. At press time, this was -58.38%.  

Source: Santiment

A negative MVRV value indicated that the SHIB has been “undervalued” in 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’s SHIB’s market cap in BTC terms

Moreover, over the past month, SHIB has experienced a decline in its network and social activities. If this trend persists, it could pose challenges for the token’s value to increase. There is a connection between a token’s network activity and its price performance. In the last month, daily active addresses have declined steeply. Social dominance and volume have also fallen and remained in their downtrend positions at press time. 

Source: Santiment

Social activity has to improve for SHIB’s price to continue on this weekend’s upward trajectory. Likewise, new liquidity has to enter the market through increased network activity.