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Shiba Inu (SHIB) Falls Into General Meme Coin Bloodbath: Details
In short
- The cryptocurrency sector has seen a significant correction, with the meme coin market cap dropping 10% to $46.4 billion; Shiba Inu (SHIB) is down 6% on the day and 8% on the week.
- On the other hand, some tokens tied to political figures, such as Kamala Horris (KAMA), have seen gains.
Meme coins in red territory
The cryptocurrency market has undergone another significant correction today (July 4), with Bitcoin (BTC) falling to a multi-month low of nearly $58,000 (according to CoinGecko data) and Ethereum (ETH) plummeting to $3,100.
The situation in the meme coin niche is even more bearish. The total market capitalization of the sector is down 10% on the day, currently standing at around $46.4 billion. Shiba Inu, the second largest of the cohort, is in deep red, down 6% in the last 24 hours and 8% on the week.
SHIB’s daily trading volume also fell to lows of less than $300 million. In comparison, Dogecoin (DOGE)’s figure reached around $850 million, while Pepe (PEPE) accounted for nearly $900 million.
Other meme coins whose prices have dropped significantly in the last 24 hours include WIF (-10%), FLOKI (-11%), MEW (-13%), POPCAT (-17%), and many more.
The few that have made any gains are those related to political figures who were supposed to replace Joe Biden in the US presidential campaign. Recall that the current American political leader behaved unconvincingly during the debate against his main opponent in the Republican Party, Donald Trump.
Consequently, some sources indicated that someone more suited to the job, such as Vice President Kamala Harris, could take her place. Kamala Horris (KAMA) – a token correlated to the vice president – has jumped 30% per day and even 1,000% every two weeks.
Will the SHIB phenomenon be able to recover in the near future?
Despite its recent poor performance, some key metrics suggest that a renewed rally in the Shiba Inu may be on the horizon. First, the Relative Strength Index (RSI) has been at relatively low levels for the past month.
The technical analysis tool measures the speed and change of price movements and ranges from 0 to 100. A score above 70 shows the possibility of a possible correction. The last time SHIB RSI crossed that zone was at the end of May, currently positioned towards 30.
It is also worth observing the net trade flow of the Shiba Inu. Outflows overcome inflows on most days last week, indicating a shift away from centralized platforms toward self-custody methods. This is considered bullish as it reduces immediate selling pressure.
SHIB Exchange Netflow, Source: CryptoQuant
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