Meme Coin Market Cap Hits $23.7B as SHIB Surges 28% Amid Overbought Risks

Woofun AI reports that the meme coin market experienced a significant upswing, driven by major tokens including Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE). This collective strength has propelled the sector's total market capitalization higher, marking a notable shift in sentiment across these high-volatility assets.

The broader sector expanded by 2.56% over the past 24 hours, adding $590 million to reach a total valuation of $23.73 billion. This rapid accumulation of value highlights the intense liquidity flowing into speculative digital assets during this trading session.

Shiba Inu emerged as a standout performer within this rally. According to CoinMarketCap, SHIB has appreciated by 28% over the last seven days, with its price settling at $0.000005347. This represents an 8.90% increase in the last 24 hours, accompanied by a surge in trading volume to its highest level in months.

Technically, the token has breached critical momentum thresholds, breaking above both the 50-day and 100-day moving averages. These breaks suggest strong short- and medium-term bullish pressure, though the next major hurdle remains the 200-day moving average, which will likely dictate the sustainability of this upward trend.

Woofun AI data shows that despite the bullish price action, caution is warranted as the Relative Strength Index (RSI) has climbed above 80. Since an RSI reading above 70 is generally considered overbought, this extreme level indicates that the asset may be due for a short-term correction or consolidation period.

The meme coin sector remains heavily influenced by social media sentiment, retail enthusiasm, and speculative trading dynamics. While Bitcoin and Ethereum posted modest gains, providing a broader recovery backdrop, SHIB’s elevated RSI and proximity to resistance levels suggest that independent research and risk management are essential for navigating these volatile conditions.