Recent data from Glassnode indicates a major decline in futures open interest in the meme coin sector, suggesting a shift in market sentiment.
Glassnode Data on Meme Coin Open Interest
According to Glassnode, open interest across memecoins has seen major deleveraging since reaching peaks. Dogecoin’s (DOGE) futures open interest plummeted by 58.45% to $1.49 billion. On December 9, DOGE’s futures open interest was $3.58 billion, highlighting the recent sharp drop. Similar patterns were observed in other meme coins such as Pepe (PEPE), Bonk (BONK), and dogwifhat (WIF).
Which Meme Coins are Leading the Trend Rebound Game?
A significant drop in futures open interest in the memecoin sector typically indicates traders are reducing exposure. Despite this, the memecoin market is experiencing a bullish rally. Floki Inu (FLOKI) is the biggest gainer among the top 10 memecoins by market cap. In the last 24 hours, the price of FLOKI increased over 15.84% to $0.0001039.
What to Expect Moving Forward
Technical indicators suggest Dogecoin may drop further below key support levels. Notably, DOGE has encountered another death cross as its Market Value to Realized Value (MVRV) ratio fell below the 200-day moving average. Despite the negative outlook, DOGE could defy bearish trends given the discussions about a potential DOGE ETF launch.
With changes in open interest and market sentiment, the future of meme coins remains uncertain, though discussions of new financial products and potential price reversals add intrigue to the sector.
