The cryptocurrency market has been shaken by significant fluctuations in recent days. Bitcoin fell below $50,000, while Ethereum dropped to $3,170. The value loss of these two giants also led to a significant collapse in the meme coin market. The total market value of meme coins dropped by 23% to $33 billion. Leading meme coins like Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), and dogwifhat (WIF) experienced double-digit losses and fell to multi-month lows.
Worse Performance in PolitiFi Tokens
PolitiFi tokens are among the worst performers among meme coins. Meme coins related to Donald Trump, TREMP and TRUMP, plummeted by 28% and 27%, respectively. The KAMA token associated with Kamala Harris also experienced a deep decline.
Some key indicators for Shiba Inu (SHIB) suggest that its value might increase soon. SHIB’s Relative Strength Index (RSI) fell below 20. RSI is an indicator that measures the speed and change of price movements and typically indicates overbought conditions when above 70 and oversold conditions when below 30. This could indicate that SHIB might experience a recovery soon.
Exits from Exchanges May Indicate the End of Correction
According to CryptoQuant data, Shiba Inu’s exits from exchanges significantly exceeded its entries over the past five days. This indicates a shift from centralized platforms to self-custody methods, which is generally considered bullish as it reduces sudden selling pressure. It is important for investors to monitor these indicators closely.
Dogecoin, one of the leading names in the meme coin sector, experienced significant losses. Other popular meme coins similarly lost value. Overall, there is great uncertainty in the meme coin market, and investors continue to act cautiously. This uncertainty leads to increased volatility and sudden price changes in the market.
This major decline in the meme coin market is actually a reflection of the turmoil in the general cryptocurrency market. However, some technical indicators suggest a recovery for certain meme coins, especially SHIB. These fluctuations in the cryptocurrency market present both risks and opportunities for investors, as similar movements have occurred in the past. The market usually recovers quickly after such declines. Therefore, those holding cryptocurrencies should not panic and should wait patiently.
