TL;DR

SHIB collapsed to a four-month low, but one indicator suggests a potential move to the upside. The entire meme coin niche is in red today (February 3), with WIF, BONK, FLOKI, and more among the biggest losers.

Just a Temporary Correction?

The past 24 hours have been calamitous for the cryptocurrency market, with numerous leading digital assets recording double-digit losses. Bitcoin (BTC) briefly crashed below $92,000, but it was the altcoins that took the major blow. 

Among the worst affected was the popular meme coin Shiba Inu (SHIB), whose valuation collapsed to $0.00001284, representing the lowest point since September last year. In the following hours, the bulls managed to restore some of the lost ground, and the price is currently hovering at around $0.00001443, a 17% daily decline.

Despite the bearish environment, the SHIB Relative Strength Index (RSI) suggests an incoming reversal. The metric, which measures the speed and change of price movements, varies from 0 to 100 and helps traders identify oversold or overbought conditions. 

The ratio recently dipped to 16, which signals that the asset might be undervalued and potentially headed for a rally in the short term. 

Additionally, SHIBs exchange netflow has turned predominantly negative in the past week. This indicates a possible shift from centralized platforms toward private wallets, hence a reduced immediate selling pressure.

SHIB Exchange Netflow

Overall Meme Coin Outlook

The total market capitalization of the meme coin sector currently stands at approximately $75 billion. This represents a major crash of over 17% on a 24-hour scale.

Some of the biggest losers include Pepe (PEPE), Bonk Inu (BONK), Floki (FLOKI), dogwifhat (WIF), and Brett (BRETT). All of those saw their prices plummet by more than 20% during the aforementioned timeframe.

The meme coins that made the headlines towards the end of January Official Trump (TRUMP) and Melania Meme (MELANIA) have also headed south. The former lost its spot in the top 3 list and is now the fourth-biggest meme. For its part, MELANIA (whose market cap briefly spiked above $2 billion last month) now has a capitalization of just $220 million.

On the other hand, Fartcoin (FARTCOIN), AI Rig Complex (ARC), and Elon4AfD (ELON4AFD) are among the very few charting some gains.