![Analytics Firm Issues Altcoin Warning, Says Crypto Asset That’s Surged 393,000% Year-to-Date Is Likely Overheated Analytics Firm Issues Altcoin Warning, Says Crypto Asset That’s Surged 393,000% Year-to-Date Is Likely Overheated](https://i1.wp.com/dailyhodl.com/wp-content/uploads/2021/10/altcoin-forming-top.jpg?fit=1024,600&ssl=1)
Analytics Firm Issues Altcoin Warning, Says Crypto Asset That’s Surged 393,000% Year-to-Date Is Likely Overheated
![Analytics Firm Issues Altcoin Warning, Says Crypto Asset That’s Surged 393,000% Year-to-Date Is Likely Overheated Analytics Firm Issues Altcoin Warning, Says Crypto Asset That’s Surged 393,000% Year-to-Date Is Likely Overheated](https://i1.wp.com/dailyhodl.com/wp-content/uploads/2021/10/altcoin-forming-top.jpg?fit=1024,600&ssl=1)
Blockchain analytics platform Santiment says that a memecoin which has soared by nearly 400% over the past seven days could be due for a correction.
Santiment points out that the number of Shiba Inu’s (SHIB) active deposits is “extremely high,” which suggests a possible reversal in the future.
“Yellow flags starting here. Extremely high active deposits are suggesting that it’s probably a top forming.”
![](https://i0.wp.com/production-sanbase-images.s3.amazonaws.com/uploads/8cea8143007460eddf107cd27c58d64231a5f615f8c59b43bc59da7479dcfe5c_1633464161785_SHIBA INU (SHIB) [23.02.32, 05 Oct, 2021].png?resize=3840,1300&ssl=1)
The crypto analytics firm says that even though SHIB inflow to exchanges is “not very high,” it nevertheless hints that a reversal could be imminent.
“It’s not very high, we would expect to see much higher. But still it’s suggesting the same, probably a top forming.”
![](https://i0.wp.com/production-sanbase-images.s3.amazonaws.com/uploads/b13da1fae5808f32b8944aa8815e980268ca44fe64de282c567899fda2ff55e7_1633464286739_SHIBA INU (SHIB) [23.04.32, 05 Oct, 2021].png?resize=3840,1300&ssl=1)
Santiment also says that profit-taking by SHIB traders is low, an indication that traders are betting on the price of the memecoin surging even higher. The firm warns that markets often “punish” this kind of overconfidence.
“…potential profit-taking from Shiba is still relatively low, not a whole lot… yet.
We would notice that higher price tops are built on lower profit-taking spikes. This could potentially indicate that traders are becoming too confident on price action, like ‘no need to sell, it’s going to pump more.’ Market tends to punish this sort of confidence.”
![](https://i1.wp.com/production-sanbase-images.s3.amazonaws.com/uploads/60bf60ef77cc47e4efb3d4936da8af51cdf2dea8340f0b572cddef4783ccc979_1633464711296_SHIBA INU (SHIB) [23.11.44, 05 Oct, 2021].png?resize=3840,1300&ssl=1)
Shiba Inu is trading at $0.000034 at time of writing, according to CoinGecko. Since the start of the year when the memecoin was priced at $0.000000000077, SHIB has surged by over 440,000%. SHIB is currently ranked 12th by market cap.
Don’t Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Giovanni Cancemi/Vladimir Sazonov
The post Analytics Firm Issues Altcoin Warning, Says Crypto Asset That’s Surged 393,000% Year-to-Date Is Likely Overheated appeared first on The Daily Hodl.
Go to Source
Author: Daily Hodl Staff