Meme coins have experienced a turbulent month, with the total market value of the crypto category plummeting by almost 50% in just 30 days. Despite this significant drop, crypto analysts are closely monitoring individual tokens to identify any potential opportunities for a market reversal.
Data from CoinmarketCap reveals that the total market capitalization of meme coins fell from $96.23 billion on January 27, 2025, to $57.41 billion as of February 26. This represents a substantial 43.63% crash over the course of the month.
Among the top meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB) were hit particularly hard by the market downturn. DOGE, the largest meme coin, saw a 55% decline in value, dropping from a yearly high of $0.4343 in mid-January to $0.2145 on February 25.
SHIB, the second-largest meme coin, also faced significant selling pressure, approaching a crucial support level. The price of SHIB recently bounced off the $0.00001303 support on February 25 after weeks of continuous decline. Analysts are closely monitoring this price region, as historical data suggests that SHIB has previously reversed around this level, leading to significant price rallies.
Technical analysis of SHIB’s current price level indicates a critical juncture that could dictate the future price action of the meme coin. The weekly chart for SHIB/USD suggests that the cryptocurrency may either break below support and continue its downward trajectory or find a pivot point for a potential reversal to maintain the price range from mid-March 2024.
As investors navigate the volatile meme coin market, it is essential to exercise caution and conduct thorough research before making any investment decisions. The information provided in this article is for educational purposes only and should not be construed as financial advice. Readers are advised to proceed with vigilance and seek professional guidance when considering any actions related to cryptocurrency investments.