When it comes to meme coins, PEPE has been a standout performer, achieving multiple all-time highs in 2024 and crossing a $5 billion market cap. This rapid rise was accompanied by increasing open interest in the coin.
However, by mid-2024, PEPE's open interest saw a significant decline. From its peak of $794.77 million in May 2024, it dropped to $215 million by August, marking a 72% fall.
This decline in open interest suggests waning bullish sentiment among investors. Many are betting on the coin's price going down, leading to increased selling pressure.
Despite the bearish outlook, such situations can sometimes precede a market reversal. A potential short squeeze could drive PEPE prices up, especially as open interest and price have shown a positive correlation.
