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While Bitcoin (BTC) and meme tokens such as Shiba Inu (SHIB), Dogecoin (DOGE), Pepe coin (PEPE) experienced great increases, some investors turned this into an opportunity and started selling profits.
While meme tokens are getting support from the broader market rally and further gains are expected, Santiment said investors should be careful about meme tokens.
At this point, Santiment said that there was a significant increase in the trading volume of some mem tokens, which attracted particular attention last week.
Stating that mem tokens such as SHIB, PEPE, FLOKI and BONK have witnessed an extraordinary increase in trading volume with an average increase of over 3,000% in the last week alone, Santiment claimed that this sudden increase could mean a potential return in the price of mem tokens.
According to Santiment, the sudden increase in trading volume translates into a rising price and increased interest from the community in these meme tokens.
At this point, Santiment argues that the sudden increase in transaction volume, combined with the increase in social volume, may be an important indicator of increased volatility and potential price reversals in the coming days.
“ Mem tokens, especially those that have been trending in the past week, have seen a rapid increase in trading volume due to rising prices and increased interest.
On average, SHIB, PEPE, FLOKI and BONK saw +3,000% volume growth last week.
“When you combine a sudden increase in trading volume and a sudden increase in social volume in any asset, memecoin or other altcoin, this can be considered a significant volatility and price reversal indicator for that asset.”
📈 #Memecoins, particularly those that have been trending over the past week, have skyrocketed in trading volume due to surging prices and increased crowd interest. On average, $SHIB, $PEPE, $FLOKI, and $BONK has seen volume rise +3,000% in the past week. https://t.co/MMHxbMotu0 pic.twitter.com/AiIaEbgGIz
— Santiment (@santimentfeed) March 4, 2024
*This is not investment advice.