Memecoin sector experienced significant correction
On this day, July 4, the digital currency realm underwent another sizable downturn, witnessing Bitcoin (BTC) fall to its lowest in months at nearly $58,000, according to CoinGecko, and Ethereum (ETH) decreasing to $3,100.
The meme coin sector specifically is witnessing greater bearish trends. Its aggregate market value has diminished by 10% today, now valued at about $46.4 billion. Shiba Inu, ranking as the second-largest within this group, has significantly declined, dropping by 6% over the last 24 hours and 8% over the past week.
Moreover, the trading volume for SHIB has seen a sharp decline, dropping below $300 million. For context, Dogecoin’s (DOGE) trading activity hit roughly $850 million, whereas Pepe (PEPE) reached close to $900 million.
Additional meme tokens facing steep declines in the last day include WIF (-10%), FLOKI (-11%), MEW (-13%), POPCAT (-17%), among others.
However, a select few tokens have seen growth, particularly those linked to political figures speculated to potentially succeed Joe Biden in the forthcoming U.S. presidential elections. The lackluster debate performance of the current U.S. president against Donald Trump has fueled such speculations.
In light of these events, rumors suggested Vice President Kamala Harris might be considered a replacement. Kamala Horris (KAMA) – a token connected to the Vice President – has surged by 30% daily and an astonishing 1,000% over the past two weeks.
Despite its recent downturns, there are positive indicators suggesting a possible resurgence for Shiba Inu. One such indicator is the Relative Strength Index (RSI), which has remained at low levels over the last month.
This technical analysis indicator evaluates the velocity and magnitude of price movements, ranging between 0 and 100. A score above 70 suggests the possibility of a downturn. The last instance SHIB’s RSI exceeded this threshold was in late May, finding itself around 30 currently.
Another aspect worth noting is the Shiba Inu exchange netflow, with outflows consistently overtaking inflows last week. This trend towards self-custody could signal reduced immediate selling pressure, a bullish sign for the token.
