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The cryptocurrency market has experienced a massive crash, with Bitcoin dropping below the critical $50,000 mark. The overall market capitalization of meme coins has plummeted by 23%, and major cryptocurrencies like Dogecoin (DOGE) and Shiba Inu (SHIB) have reported double-digit losses, reaching their lowest levels in months.
The crash has not spared meme coins, which now faces a daunting market capitalization of approximately $33 billion. In addition to Dogecoin and Shiba Inu, other meme coins like Pepe (PEPE), dogwifhat (WIF), and others are also down. Paradoxically, politically themed tokens have suffered even more intensely; meme coins associated with Donald Trump, including TREMP and TRUMP, have dropped by 35% and 30%, respectively, while Kamala Harris-related KAMA is also facing massive downturns.
Indicators Suggest Potential SHIB Recovery
Interestingly, following this turbulence, a couple of lesser-known meme coins, such as Neiro (NEIRO), have managed to record slight gains. This is in stark contrast to another Neiro variant on ETH (NEIRO), which has witnessed a decline following an insider trading scandal.
Despite the crash, there are some encouraging signals that hint at a potential SHIB recovery in the near future. The Relative Strength Index (RSI) for Shiba Inu has plunged below the 20 mark in recent days. The RSI is a technical indicator that measures the speed and change of price movements, with values ranging from 0 to 100. When the RSI exceeds 70, it usually indicates overbought conditions, often leading to market corrections. Conversely, an RSI below 30 suggests that the asset may be oversold, signalling the possibility of a rebound.
In addition to the RSI, SHIB’s exchange net flows also indicate reduced selling pressure. According to data from CryptoQuant, Shiba Inu has seen outflows dramatically surpass inflows over the past five days. This trend suggests a shift from centralised exchanges to self-custody practices, a sign typically viewed as bullish because it alleviates immediate selling pressure.
The broader cryptocurrency environment remains volatile, underscored by a total of $1.06 billion worth of crypto liquidations in the last day. This includes $901.33 million from long positions and $159.41 million from short positions. Previously, earlier figures indicated around $800 million in liquidations, illuminating the rapid and intense nature of this market downturn.
Market analysts have begun to entertain the notion that Bitcoin may be approaching a market bottom despite the continuing volatility unsettling many investors. There’s notable speculation surrounding Bitcoin hitting a critical support level of $52,000, which could catalyse a recovery, while failure to hold this level might invite further declines to approximately $44,000.
Crypto trader Bitcoin Jack discussed the potential of the market retesting the bottom of a parabolic channel, adding that the price action could lead to a bottom scenario extending into 2026. Similarly, well-known analyst CryptoKaleo emphasises that current conditions could serve as an advantageous buying opportunity but urges caution against trying to pinpoint an exact “pico bottom.”
Despite ongoing uncertainty, some analysts remain optimism about the cryptocurrency market’s prospects. Charles Edwards, founder of Capriole Investments, reiterated that the $52,000 level could signal a positive market movement if maintained. He pointed out that emotional sell-offs will likely expedite a market rebound.
Santiment highlighted a growing conversation about buying opportunities, although it hasn’t led to matching returns after such steep declines. Analysts caution that while the environment is rife with risks, it can also offer strategic investment prospects, especially for long-term players.
The crypto market’s journey forward will hinge on crucial variables, like support levels, broader economic indicators, and shifting investor sentiment, which will be pivotal in determining future growth and stability. The ongoing volatility remains a challenge for investors as they navigate erratic price movements and anticipate recovery signs. Stay tuned for more updates on this evolving story on the Turkish NY Radio.
