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In the case of meme coins, PEPE has undoubtedly been among the finest performers within the last yr. The meme coin reached an all-time high after an all-time high in 2024, eventually crossing the $5 billion market cap. The rapid rise in price was followed by a surge within the open interest of the meme coin on the time. Nevertheless, with time, the open interest has seen a notable decline, each in price and in open interest, but this could possibly be excellent news for the PEPE meme coin.
PEPE Open Interest Down 72%
In the midst of 2024, the PEPE price rose quickly because the crypto market rebounded. This rise to recent all-time high levels also meant that interest within the meme coin was rising rapidly and the result was the PEPE open interest actually touching a recent all-time high of its own.
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In accordance with data from the Coinglass website, in May 2024, the PEPE price rose to its current peak of $0.000017, while the open interest reached a recent high of $794.77 million. Nevertheless, bulls lost momentum at this level because the shooters took over the crypto market. Over the following few months, the PEPE price declined, as did the open interest.
By August, the PEPE open interest dropped to levels not seen since April 2024, meaning recent 4-month lows. The open interest went from almost $800 million to as little as $215 million. Since then, there was some recovery within the open interest, but it surely has remained shaky.
Source: Coinglass
The drop to August lows meant that the open interest had fallen as much as 72% from its peak. Nevertheless, around this time, the PEPE price has fallen only around 55% from its peak, going from $0.000017 to as little as $0.000007.
Is This Good News?
The drop in open interest within the PEPE meme coin does signal a decline in bullish sentiment amongst investors. It signifies that investors are more willing to bet on the value of the meme coin taking place relatively than going up, which could mean mounting selling pressure on the coin.
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Nevertheless, times like these can often grow to be bullish for a cryptocurrency’s price. It is because when investors are probably the most bearish, the percentages of a reversal are higher, taking the shorter by surprise. Given how much the open interest has fallen, it might come as no surprise if there was a brief squeeze, flushing bears out of the market.
If this happens, then the PEPE price could see a fast recovery from here. Naturally, because the open interest begins to rise, so would the value, given their positive correlation to date.
Token price retraces from recovery | Source: PEPEUSDT on Tradingview.com
Featured image created with Dall.E, chart from Tradingview.com