Meme Coin Showdown: How Political Tokens Reshaped the Sector—And Why Shiba Inu Black Bears Face Testing Times

The meme coin landscape underwent a dramatic transformation in 2024, with political narratives playing an outsized role in driving price volatility across the sector. Recent market analysis reveals how election-themed assets catapulted the entire meme ecosystem to new heights, only to trigger sharp reversals that left investors reassessing their positions.

The Political Token Effect on Meme Coin Dynamics

Data aggregation platform CoinGecko’s latest research shed light on a crucial market driver: the rise of election-related tokens fundamentally altered meme coin trajectories throughout 2024. The meme sector achieved a remarkable $150.6 billion market capitalization in December—surpassing the previous 2021 peak—a milestone directly attributable to the proliferation of politically-themed assets.

The mechanism was straightforward: new launchpad infrastructure enabled rapid token creation, while Solana’s ecosystem experimentation created ideal conditions for mass adoption. When combined with heightened interest around the 2024 U.S. elections, the result was a speculative frenzy. Tokens bearing names like TRUMP, Melania, and LIBRA dominated trading terminals and social platforms, attracting waves of retail capital. However, as these narratives faded post-election, investor confidence evaporated, triggering the subsequent market correction.

This cycle underscores a harsh reality for traditional meme assets: they now compete for attention in an increasingly politicized and event-driven landscape.

Three Assets Under Pressure or Poised for Growth

Shiba Inu: Navigating Bearish Consolidation in Black Market Conditions

Shiba Inu black market dynamics continue to weigh on the broader SHIB token, which has found itself trapped in bearish consolidation patterns. The asset’s recent recovery attempt faltered as sellers reasserted control, forcing SHIB to establish a descending channel that shows no signs of breaking.

Technical deterioration is evident across multiple timeframes. The token trades decisively below key moving averages—the 20, 50, 100, and 200-day exponential moving averages all sit above current price levels, a bearish alignment that reinforces downward pressure. Spot market outflows have accelerated, suggesting institutional or large holder exit activity. Shiba Inu’s market sentiment has shifted decidedly negative.

Currently trading at $0.0000078 (down 9.11% weekly), SHIB needs to reclaim and sustain above the $0.0000086 level to begin reversing this trend. A successful break would require renewed adoption activity and positive social sentiment—neither of which appears imminent in the near term.

Pengu: Resistance Levels Prevent Rally Extension

PENGU presents a similarly challenging technical picture, though with slightly different dynamics. The token remains pinned below its critical moving average structure (20, 50, and 200-day MAs), indicating sustained bearish pressure.

More significantly, every rally attempt encounters the same $0.01139 resistance barrier, which coincides with the Ichimoku Kijun indicator—a multi-layered technical ceiling that has proven difficult to penetrate. The MACD histogram and ADX momentum readings both flash negative signals, confirming the bearish regime.

Updated data shows PENGU trading at $0.01 with a modest 24-hour gain of +3.24%, though this represents a 19.68% weekly decline. The baseline scenario suggests sideways price action in the days ahead as buy pressure fades. If selling accelerates, weakness toward $0.0089 support appears likely.

DeepSnitch AI: Bucking the Trend with Accumulation Signals

While SHIB and PENGU struggle, DeepSnitch AI (DSNT) stands apart with notable buying activity and growth momentum. The AI-powered protocol leverages on-chain data synthesis and natural language processing to identify emerging market opportunities before they reach mainstream awareness.

The platform’s architecture employs multiple intelligent tracking agents that continuously monitor wallet transactions, trading patterns, and social media trends in real-time. Through its live dashboard, traders gain visibility into whale activity and position accordingly—a capability that attracts sophisticated market participants seeking informational edge.

DSNT has already raised over $820,000 during its presale phase and has appreciated 86% to $0.02846. The project plans a January 2026 launch, after which token access will be restricted to DSNT holders exclusively. Market observers are positioning for potential explosive movement as the launch date approaches and scarcity mechanics begin influencing price discovery.

Market Divergence: The Verdict

The current market environment clearly differentiates between legacy meme tokens facing structural headwinds (like Shiba Inu black market selloffs and PENGU resistance) versus emerging AI-integrated platforms attracting fresh capital deployment. This divergence may persist as the sector matures beyond pure speculation into infrastructure-focused investments.

The question for 2026 remains whether traditional meme assets can reinvent themselves or if they’ll continue yielding ground to innovation-focused alternatives.