Memecoins
Shiba Inu (SHIB) Plunges Amid Widespread Bloodbath Over Meme Coins: Details
TL;DR
- The cryptocurrency sector saw a major correction, with the meme coin market cap falling 10% to $46.4 billion; Shiba Inu (SHIB) fell 6% daily and 8% weekly.
- On the other hand, some tokens linked to political figures, such as Kamala Horris (KAMA), saw gains.
Meme coins in red territory
The cryptocurrency market saw another major correction today (July 4), with Bitcoin (BTC) plunging to a multi-month low of nearly $58,000 (according to data from CoinGecko) and Ethereum (ETH) plunging to $3,100.
The situation in the meme crypto space is even more bearish. The total market cap of the sector is down 10% per day, currently sitting at around $46.4 billion. Shiba Inu, the second largest in the cohort, is in the red, down 6% in the last 24 hours and 8% on a weekly basis.
SHIB’s daily trading volume also dropped to lows below $300 million. In comparison, Dogecoin’s (DOGE) figure reached around $850 million, while Pepe’s (PEPE) accounted for nearly $900 million.
Other meme coins that have seen significant price drops in the past 24 hours include WIF (-10%), FLOKI (-11%), MEW (-13%), POPCAT (-17%), and many more.
The few who have recorded gains are those linked to political figures who were expected to replace Joe Biden in the American presidential campaign. Let us recall that the current American political leader was not very convincing during his debate against his main opponent from the Republican Party, Donald Trump.
As a result, some sources noted that someone more suited to the job, such as Vice President Kamala Harris, could take her place. Kamala Harris (KAMA) – a token linked to the VP – has jumped up 30% per day and 1,000% on a two-week basis.
Can SHIB bounce back in the near future?
Despite its weak performance of late, there are some important indicators that indicate that a new Shiba Inu rally could be on the horizon. First, the Relative Strength Index (RSI) has reached relatively low levels over the past month.
The technical analysis tool measures the speed and evolution of price movements and ranges from 0 to 100. A score above 70 indicates the likelihood of a possible correction. The last time the SHIB RSI crossed this zone was in late May, currently positioned around 30 years old.
The net flow of Shiba Inu exchange is also worth watching. exceeds capital inflows most days last week, indicating a shift from centralized platforms to self-custody methods. This is considered bullish as it reduces immediate selling pressure.
SHIB Exchange Netflow, Source: CryptoQuant
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