REN decouples from market – did the sharks play a role?
- Addresses who held thousands to millions of REN were instrumental in the token price rise.
- While network growth fell, investor sentiment remained high.
As many cryptocurrencies lingered in consolidation, Republic Protocol [REN], gained massively. At press time, CoinMarketCap showed that REN’s price had increased 25.93% in the last 24 hours.
?? #Ren has decoupled from the markets for a 2nd time this week (a 24-hour high of +20%), and there seems to be correlation with the asset's shark addresses holding 10K to 1M $REN. In the past day alone, they've collectively upped their bags by 4.73%. https://t.co/unSy1KWuI5 pic.twitter.com/HcJYMf3NCp
— Santiment (@santimentfeed) February 28, 2023
Realistic or not, here’s REN’s market cap in BTC’s terms
The decoupling from the broader market sentiment might have been impossible without the input of whales and sharks. Santiment, on 28 February, reported that addresses holding between 10000 – 1000000 REN increased the percentage of the token in their portfolio.
Trends to the top, declines in the network
Following the price rise, REN’s trading volume also increased. Usually, REN struggles to get a daily volume in hundreds of thousands. But data as of this writing put the 24-hour trading volume at over $200 million.
The volume reflects the rate of investor participation in the market. So, the increase means that traders were confident with the REN trend and were jumping on the price increase. However, there was a downside in the Ren ecosystem, which failed to follow the price and volume direction.
Between 27 – 28 February, the network growth jumped from 18.60 to 84.27. But at the time of writing, the metric had declined to 22. The network growth reveals the number of new addresses created on a network daily. So, the fall implied that most of the investors involved in trading REN were short and long-term holders.
Be that as it may, the token still ranked high in terms of the trending words in the crypto market. Despite being extremely low six days back, REN went as high as 281. The spike had also expanded its impact on the weighted sentiment.
Careful with the REN value state
The weighted sentiment describes investor perception of an asset. At press time, the metric was exiting the below-equilibrium at 0.025. This implies that the unique social volume was high and the vast majority of messages were positive.
Regarding the REN value, on-chain data showed that the Market Value to Realized Value (MVRV) ratio z-score had increased. The z-score defines if an asset is undervalued, overvalued, or in a fair condition.
Read Republic Protocol’s [REN] Price Prediction 2023-2024
At press time, the MVRV z-score was -0.565 — the highest it had hit since September 2022. Although still negative, the height it reached implies that REN could be nearly overpriced.
So, it may be in traders’ best interest to be cautious in looking to get short-term profits. Meanwhile, REN’s price was $0.1225 at the time of writing while gaining against the top two cryptocurrencies in market value.