The cryptocurrency market has recently undergone a significant adjustment, with leading cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) plummeting to their lowest levels in several months. This downturn has notably impacted the meme coin sector, reducing its total market capitalization by 10% to around $46.4 billion.
Substantial Losses for Meme Coins
Shiba Inu (SHIB), the second-largest meme coin, experienced a notable decline, with its price dropping by 6% in the past 24 hours and 8% over the past week. Trading volume for SHIB has also decreased, falling below $300 million. In comparison, Dogecoin (DOGE) and Pepe (PEPE) fared somewhat better, with trading volumes of approximately $850 million and $900 million, respectively. Other meme coins such as WIF, FLOKI, MEW, and POPCAT also saw significant price drops, ranging from 10% to 17% within 24 hours.
Political Tokens Defy Market Trends
Contrary to the general decline in the meme coin market, tokens associated with political figures have shown resilience and growth. For instance, the token linked to U.S. Vice President Kamala Harris, known as Kamala Harris (KAMA), surged by 30% daily and an impressive 1,000% over the past two weeks. This surge is attributed to speculation that Harris might be a more suitable candidate for the upcoming presidential election compared to the incumbent, Joe Biden, particularly following his lackluster debate performance against Donald Trump.
Prospects for Shiba Inu’s Rebound
Despite its recent downturn, several indicators suggest that Shiba Inu (SHIB) might be on the verge of a rebound. The Relative Strength Index (RSI), a technical analysis tool that measures the speed and change of price movements, has been relatively low over the past month. The RSI scale ranges from 0 to 100, with scores above 70 indicating a potential correction. SHIB’s RSI last crossed this threshold at the end of May and currently stands around 30.
Additionally, Shiba Inu’s exchange net flow presents a positive outlook. Throughout last week, more outflows than inflows were recorded, indicating a shift from centralized platforms to self-custody. This trend is seen as favorable, as it reduces immediate selling pressure and potentially signals a price recovery.
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