Shiba Inu Price Spikes by 37%, But Analysts Warn of Selling Pressure

The price of Shiba Inu (SHIB) surged by 37% in just two days, but quickly gave back some of its gains. This sudden spike in price has raised questions about what drove it and where the market is headed next.

Santiment's analysis suggests that social media interest in SHIB increased significantly during the rally, with SHIB's social dominance reaching 0.084% on April 2nd - its highest level since then. However, this surge in social media interest peaked when price movement began to weaken.

According to Santiment, large investors may have viewed the rise as a selling opportunity. The company noted that 52 whale transactions occurred in SHIB in a single day, the highest daily level recorded since March 31st. This suggests that large investors reduced their SHIB positions by realizing profits as the price rose.

The surge in social media interest is believed to have provided whales with the necessary liquidity to reduce their positions. Individual investors are thought to have entered the market later, driven by the FOMO effect as the price approached its peak.