PEPE Cryptocurrency Faces Major Deleveraging

According to on-chain analytics platform Glassnode, frog-themed cryptocurrency PEPE has seen a significant deleveraging as Futures Open Interest across the meme coin sector has declined sharply since its peaks.

Recently, a trend has emerged among meme coins where open interest has cooled off following speculative peaks. The trend indicates a significant correction in open interest across meme coins, suggesting a flushing out of leverage while also signaling a shift in sentiment across the sector.

Major Deleveraging Stats

> PEPE, BONK, and WIF have experienced major deleveraging:
>
> 📉 PEPE: -71.93% ($1.25B → $351M)
> 📉 BONK: -75.10% ($715M → $178M)
> 📉 WIF: -69.83% ($653M → $197M)

These meme coins have followed a similar pattern, cooling off after speculative highs.

Frog-themed meme coin PEPE has dropped in price by 42% monthly and has seen its futures open interest plummet by 71.93%, falling from $1.25 billion to $351 million.

The meme coin sector as a whole is undergoing a significant shift, with futures open interest sharply contracting after hitting speculative peaks. This trend is echoed by other meme coins such as SHIB, DOGE, and BONK.

At the peak of the speculative frenzy, meme coins experienced a surge in trade volumes and substantial leveraged holdings. However, recent data indicates that this exuberance is waning. The significant decrease in futures open interest across the sector suggests that traders are pulling back, reducing their exposure, and flushing out excessive leverage from the market.

PEPE Down 42% Monthly

After a remarkable surge in late 2024, PEPE is now facing a harsh reality. The token has seen a steep decline of 42% over the past month, reflecting a broader correction in the often volatile meme coin sector.

Currently, PEPE is down 2.29% in the last 24 hours to $0.0000092 and has decreased by 0.09% weekly.

Since reaching an all-time high of $0.000028 on December 9, 2024, PEPE has steadily declined, now down 66.5% from that peak. January saw a continuous decline for four consecutive weeks.

Although bears took a breather last week with a slight bounce back, the downward trend has resumed with PEPE declining this week. Traders will be watching for a potential recovery beyond the daily SMA 50 at $0.00001453 to determine if a price comeback is achievable.