DOGE remains the undisputed leader in the meme coin realm, whereas the battle for the second spot has been fierce lately.
The self-proclaimed Dogecoin killer, long-standing as the second-largest meme coin, has recently faced serious pressure from the fast-rising MemeCore (M).
The latter posted a double-digit price increase over the past 24 hours and once again reclaimed the No. 2 spot, prompting questions about whether SHIB can restore its former glory.
Shuffle in the Sector… Again
Shiba Inu may be up 3% on a weekly basis, but the broader picture is bleak – the token has lost half its value over the past year. Its market cap slipped to approximately $3.7 billion, pushing SHIB back into third place among all meme coins.
The second position now belongs to MemeCore (M), which is one of the top-performing cryptocurrencies today (May 5). Its price has jumped 25%, while its capitalization has surged to roughly $4.3 billion.
It remains unclear exactly what triggered M’s rally, as one potential catalyst could be the recent initiative unveiled on its X account. The team launched the “No Cap(tion)” community contest, offering USDT rewards to participants. The event will run until May 7 as users’ captions must “fit the scene,” “be creative,” and “fun.”
It is worth noting that there are some red flags surrounding M, suggesting its price could reverse just as sharply. Numerous analysts, including X user Noodles, have labeled the project as a scam and a “ghost chain,” claiming that fewer than 10 wallets control the entire network. Such concentration makes the valuation highly vulnerable to manipulation.
Meanwhile, M’s Relative Strength Index (RSI) has entered overbought territory at around 75, which is typically a precursor of a pullback. The technical analysis tool measures the speed and magnitude of recent price changes and ranges from 0 to 100. Conversely, anything below 30 is considered a bullish zone.
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What’s Next for SHIB?
M could dip in the short term, but SHIB isn’t immune either. As a meme coin, it is just as vulnerable to hype cycles, while several indicators point to weakening user engagement, which increases the risk of a correction.
Shibarium’s activity is an evident example. Daily transactions processed on the layer-2 scaling solution remain quite low compared to figures observed before last year’s exploit. The reduced numbers reflect weak demand, fading utility, and a shrinking base of active ecosystem participants that could further undermine market confidence.
The rising amount of SHIB tokens stored on exchanges is another bearish factor. The development indicates that investors have shifted from self-custody methods toward centralized platforms, thereby increasing immediate selling pressure.
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