TL;DR
- The cryptocurrency sector crashed, with Bitcoin briefly falling below $50,000. The meme coin’s overall market capitalization tumbled by 23%, with major coins like Dogecoin, Shiba Inu, and others experiencing double-digit losses.
- However, some metrics suggest a potential rebound for SHIB, with its RSI falling below 20 and exchange netflows showing reduced selling pressure.
Memes Bleed Out Heavily
The cryptocurrency market crashed in the past 24 hours, with Bitcoin (BTC) briefly slipping under the psychological level of $50,000 and Ethereum (ETH) dropping to as low as $3,170 (per CoinGecko’s data).
The situation in the meme coin sector is no better. The niche’s market capitalization has collapsed by a staggering 23% daily, currently standing at around $33 billion. Leading memes, including Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), dogwifhat (WIF), and many more, are down by double digits, reaching multi-month lows.
PolitiFi tokens have performed even worse. Meme coins related to the presidential candidate Donald Trump, such as TREMP and TRUMP, have crashed by 35% and 30%, respectively. KAMA – an asset linked to the Democratic nominee Kamala Harris – is also deep in the red.
Some of the very few memes recording some gains in the past 24 hours are the lesser-known Neiro (NEIRO) and Neiro (NEIRO). On the other hand, Neiro on ETH (NEIRO), which was recently the subject of an insider trading scandal, is among today’s losers.
SHIB Rebound on the Horizon?
Despite the crash, some important indicators hint that Shiba Inu’s value may soon head north. The SHIB Relative Strength Index (RSI), which measures the speed and change of price movements, has plummeted below the 20 mark in the last few days.
The metric varies from 0 to 100. When it is above 70, this is indicative of overbought conditions, which are known to sometimes lead to a correction. On the other hand – when it is below 30, this suggests that the asset is oversold, which might induce a bounce.
SHIB’s exchange netflow also suggest that the end of the correction could be just around the corner. According to CryptoQuant, Shiba Inu outflows have significantly surpassed inflows in the last five days, signaling about a shift from centralized platforms toward self-custody methods. This is generally considered bullish since it reduces the immediate selling pressure.
