Shiba Inu (SHIB), Pepe (PEPE), and ApeCoin (APE) have performed well against Bitcoin recently. Here’s what the memecoins’ profits mean.
SHIB, PEPE, And APE Have Enjoyed An Uptrend Recently
Bitcoin has been going through a major phase of stagnation recently as the number 1 cryptocurrency’s price has remained stuck between the $29,000 and $30,000 levels.
Much of the other market hasn’t been all that different, either. Out of the few coins that have gone against the grain and have displayed some volatility. However, the meme coins have especially stood out.
Shiba Inu, Pepe, and Apecoin, in particular, have all pulled away from BTC. Dogecoin (DOGE), the original meme coin, also saw bullish momentum earlier, but the asset has slowed down recently.
Out of these assets, PEPE has been the best performer, as it has observed profits of about 22% within the past week.
Looks like PEPE has been going up recently | Source: PEPEUSD on TradingView
While Pepe’s weekly gains are certainly the most impressive of the bunch, the meme coin is actually in severe losses of 17% when considering the period of the past month.
ApeCoin has risen by 12% in the past week, and while the coin isn’t in negative during the past month, its performance for the period is still only flat.
APE has also gone up in recent days | Source: APEUSD on TradingView
Unlike these two assets with significantly smaller market caps, Shiba Inu has not only registered impressive gains of 16% during the past week, but it has also observed a massive 32% rise during the last month.
SHIB has sharply jumped recently | Source: SHIBUSD on TradingView
The reason behind the solid Shiba Inu performance is likely to be the much-hyped Shibarium upgrade, which is expected to launch sometime later in the current week.
Does The Memecoin Rally Hold Any Significance For The Greater Market?
All in all, it’s clear that these three meme coins have been building up bullish momentum recently, and they have been doing so simultaneously.
In a new insight post, the on-chain analytics firm Santiment has revealed that while these assets may be rising, their social volumes haven’t budged much.
SHIB and others haven't seen too high social volumes | Source: Santiment
The “social volume” here is a metric that keeps track of the degree of discussion that an asset is receiving on the major social media platforms. When this indicator has a high value, it’s a sign that a large number of users are talking about the coin and that there may be FUD or hype present around the coin.
In uptrends, this metric reaching very high values is generally not a good sign, as it shows that FOMO is on the rise among social media users, which is something that has historically had an opposite effect on the price and has led to top formations.
Since these metrics have risen for SHIB and the other meme coins, it means that social media users haven’t been paying too much attention so far to the pumps that these cryptocurrencies have been going through.
In the same post, Santiment also explains that the meme coins pulling away from Bitcoin have historically held significance for the entire sector. “This can often signal that the entire crypto market may be veering toward ‘overheated’ territory,” notes the analytics firm.
Santiment also says that when SHIB and co. see isolated pumps, “it is often associated with greed and/or boredom from the crowd. And these two behaviors often have adverse impacts on the markets.”
Featured image from iStock.com, charts from TradingView.com, Santiment.net
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Author: Hououin Kyouma