Shiba Inu (SHIB) has emerged as the frontrunner amidst the recent surge in the meme coin market. Surging to certain ALT levels that have not been reached since since April 28, 2022. This significant increase followed a remarkable rally of 150% that commenced on February 26. However, as SHIB approached the $0.000025 mark, it faced resistance, eventually retracing by 10% to settle around the $0.000022 mark.

Notably, Justin Sun, a prominent figure in the crypto community, made waves by transferring a substantial amount of SHIB, totaling 20 trillion tokens valued at over $544.4K. Despite this retracement, the sentiment among the majority of SHIB holders remains bullish, reflecting optimism in the coin’s future prospects. At the time of reporting, SHIB price stands at $0.00002603, reflecting a notable 15% increase in the past 24 hours.

Shiba Inu (SHIB) Trading Volume and Investor Sentiment

The recent surge in SHIB’s trading volume has been notable, reaching a 3-year peak of $6.4 billion on March 2. However, in subsequent trading sessions, this volume witnessed a decline, settling at $3.9 billion. This $2.4 billion decline in trading volume suggests that existing investors are exercising caution, potentially anticipating a market rebound.

Interestingly, despite the decline in trading volume, the pace of this decline compared to the asset’s price suggests a robust underlying confidence among investors. Factors contributing to this confidence include positive sentiment surrounding DOGE-themed meme coins and an increased SHIB burn rate, both of which contribute to optimistic price forecasts. On-chain data from Santiment further supports this narrative, revealing a significant surge in trading volume for meme coins like SHIB, PEPE, FLOKI, and BONK, with increases averaging over 3,000% in the past week alone.

Also Read: Dogecoin Whales Move 245M Coins Amid ETF Buzz, DOGE To Hit $0.2?

Cautious View Amid Meme Coin Market Rally

While the recent rally in meme coins, including SHIB, DOGE, PEPE, and others, has been impressive, investors are urged to proceed with caution. Analysis indicates gains ranging from 30-50% across these coins, reflecting the broader market rally. However, as meme coins ride this wave of momentum, investors should remain vigilant.

The extraordinary increase in trading volume signals heightened market activity and investor interest, yet the volatile nature of meme coins warrants careful consideration. Despite the optimism surrounding these assets, investors are reminded to assess the potential risks associated with such volatile investments. As the market continues to evolve, maintaining a cautious yet informed approach is crucial for navigating the ever-changing landscape of meme coins and cryptocurrencies.

Also Read: Cardano’s Charles Hoskinson Maxes Out Donation For XRP Lawyer John Deaton

The post Shiba Inu Price Retraces 10% As Justin Sun Moves 20T SHIB Tokens appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am