Memecoins crash to multi-month lows
In the last 24 hours, the crypto market witnessed a sharp decline, with Bitcoin (BTC) temporarily falling below the significant $50,000 threshold and Ethereum (ETH) dropping to a low of $2,170, according to CoinGecko.
The meme coin segment didn't fare any better. The total market valuation of this niche tumbled by an incredible 23% in a day, now valuing around $33 billion. Front-runners in this category, including Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), dogwifhat (WIF), among others, reported loss figures hitting double-digit percentages, touching lows not seen in several months.
Tokens inspired by political figures were hit even harder. Cryptocurrencies linked to presidential candidate Donald Trump, like TREMP and TRUMP, plunged by 35% and 30% respectively. Similarly, KAMA – a token associated with Democratic nominee Kamala Harris – has significantly dipped in value.
A few meme coins, however, have managed to eke out gains over the last day, with lesser-known entities like Neiro (NEIRO) standing out. Conversely, Neiro on ETH (NEIRO), which was embroiled in an insider trading controversy recently, listed among the day’s decliners.
Amid this downturn, specific metrics suggest Shiba Inu might be gearing up for an upward adjustment. The SHIB Relative Strength Index (RSI), a tool used to evaluate price momentum changes and speeds, has recently dropped below 20.
An RSI above 70 typically signifies overbought conditions, often preceding a market correction. Conversely, an RSI below 30 is indicative of oversold conditions, which could herald a market rebound.
Furthermore, exchange netflows for SHIB hint at an approaching end to the recent downturn. Data from CryptoQuant shows that, over the past five days, there has been a substantial increase in Shiba Inu outflows compared to inflows, a sign users are moving their assets off centralized exchanges towards more secure self-custody options. This shift is generally viewed as a positive sign, likely to alleviate selling pressures.
