DOGE, SHIB, WIF and more crash to multi-month lows

TL;DR

The cryptocurrency sector crashed, with Bitcoin briefly falling below $50,000. The meme coin’s global market capitalization fell by 23%, with major coins like Dogecoin, Shiba Inu and others experiencing double-digit losses. However, some metrics suggest a potential rally for SHIB, with its RSI below 20 and net exchange flows showing reduced selling pressure. Memes bleed a lot

The cryptocurrency market crashed in the last 24 hours, with Bitcoin (BTC) briefly falling below the psychological $50,000 level and Ethereum (ETH) falling as low as $3,170 (according to CoinGecko data).

The situation in the coin sector itself is no better. The market cap of the niche has sunk by a staggering 23% daily, currently sitting at around $33 billion. Major memes, including Dogecoin (DOGE), Shiba Inu (SHIB), Pepe (PEPE), dogwifhat (WIF) and many more, are down by double digits, hitting multi-month lows.

PolitiFi tokens have performed even worse. Memecoins related to presidential candidate Donald Trump, such as TREMP and TRUMP, have dropped 35% and 30%, respectively. KAMA, an asset linked to Democratic candidate Kamala Harris, is also deep in the red.

Some of the few memes to post some gains in the last 24 hours are the lesser known Neiro (NEIRO) and Neiro (NEIRO). On the other hand, Neiro in ETH (NEIRO), which was recently the subject of an insider trading scandal, is among the current losers.

SHIB Rebound on the horizon?

Despite the accident, some important indicators indicate that Shiba Inu value may soon be heading north. The relative strength index (RSI) SHIB, which measures the speed and change of price movements, has fallen below the 20 mark in recent days.

The metric ranges from 0 to 100. When above 70, this is indicative of overbought conditions, which are known to sometimes lead to a correction. On the other hand, when it is below 30, this suggests that the asset is oversold, which could lead to a bounce.

SHIB’s net exchange flow also suggests that the end of the correction could be around the corner. According to CryptoQuant, outflows of Shiba Inu have significantly exceeded inflows in the past five days, indicating a shift from centralized platforms to self-custody methods. This is generally considered bullish as it reduces immediate selling pressure.

SHIB Netflow, Source: CryptoQuant SPECIAL OFFER (Sponsored) Binance Free $600 (excludes CryptoPotato): Use this link to register a new account and receive an exclusive welcome offer of $600 to Binance (full details).

2024 LIMITED OFFER on BYDFi Exchange – Up to $2888 Welcome Reward, Use this link to register and open a 100 USDT-M position for free!