- Addresses holding thousands to millions of REN played a key role in the symbolic price increase.
- While network growth slowed, investor sentiment remained high.
Like many cryptocurrencies remained in consolidation, the Democracy Protocol [REN], won massively. At press time, CoinMarketCap showed that the price of REN had increased by 25.93% in the last 24 hours.
🦈📈 #Ren has been disconnected from the markets for the 2nd time this week (24hr high +20%) and appears to correlate with asset shark addresses holding 10K to 1M $REN. In the past day alone, they have collectively increased their baggage by 4.73%. https://t.co/unSy1KWuI5 pic.twitter.com/HcJYMf3NCp
— Santiment (@santimentfeed) February 28, 2023
Realistic or not, there you go REN’s purchase cap in BTC terms
The disconnect from the broader market sentiment may not have been possible without the input of whales and sharks. Santiment, on February 28, reported that addresses holding between 10000 – 1000000 REN increased the percentage of the token in their portfolio.
Trends to the top, drops to the network
Following the rise in prices, REN’s trading volume also increased. Typically, REN struggles to get a daily volume in the hundreds of thousands. However, data as of this writing puts the 24-hour trading volume at over $200 million.
The volume reflects the share of investors in the market. So, the increase means that traders were confident about the REN trend and were jumping on the price increase. However, there was a downside to Ren’s ecosystem, which failed to follow the direction of price and volume.
Between February 27 and 28, network growth jumped from 18.60 to 84.27. But at the time of writing, the count had dropped to 22. Network growth reveals the number of new addresses created on a network every day. Thus, the decline meant that most of the investors involved in REN trading were short and long holders.
Source: Santiment
Be that as it may, the token still ranks highly in terms of buzzwords in the crypto market. Despite being extremely low six days ago, the REN reached 281. The rise had also extended its impact on weighted sentiment.
Be careful with the REN value status
Weighted sentiment describes investors’ perception of an asset. At press time, the metric was coming off the bottom balance at 0.025. This means that the unique volume of social networks was high and the vast majority of messages were positive.
As for the REN value, data on the chain shown that the Market to Realized Value (MVRV) z-score ratio had increased. The z-score determines whether an asset is undervalued, overvalued, or in fair condition.
Reading Protocol of the Republic [REN] Price Prediction 2023-2024
At press time, the MVRV z-score was -0.565 — the highest it has reached since September 2022. While still negative, the high it reached suggests that REN could be almost overvalued.
Source: Santiment
Thus, it may be in traders’ best interest to be cautious in seeking short-term gains. Meanwhile, REN was trading at $0.1225 at the time of writing, gaining against the top two cryptocurrencies by market value.