The meme coins have noted massive volatile trading lately amid a broader crypto market downturn. Notably, top players in the segment like DOGE, PEPE, SHIB, FLOKI, and others have also gone through a topsy-turvy lately, sparking market concerns. Amid this, a recent report suggests the turbulence may not be over yet, as derivatives data reveals a potential further decline in the assets’ prices, raising concerns among investors.
Derivatives Data Hints At Further Meme Coin Decline
In a recent X post, on-chain analytics firm Glassnode recently highlighted a sharp drop in futures open interest (OI) across the meme coin sector. According to the firm, OI metrics, which indicate the total value of outstanding derivatives contracts, have plummeted since their peaks, signaling a potential bearish trend.
Source: Glassnode, X
For Dogecoin (DOGE), the 7-day moving average of futures OI experienced a 58.45% drop, sliding from $3.58 billion on December 9, 2024, to $1.49 billion currently. The situation is even more pronounced for other meme coins, with PEPE, BONK, and WIF seeing OI declines of 71.93%, 75.10%, and 69.83%, respectively.
Source: Glassnode, X
The popular Shiba Inu and Floki Inu coins also followed this trend. SHIB’s futures OI decreased by 74.41%, from $323 million to $83 million, while FLOKI recorded a 69.18% drop, falling from $41.7 million to $12.9 million.
Source: Glassnode, X
What Does This Mean for Meme Coin Investors?
The sharp decline in futures OI indicates a potential “leverage flush-out,” where traders are closing leveraged positions, possibly due to dwindling confidence. This trend could signal a broader shift in sentiment across the meme coin sector, prompting caution among retail investors.
For investors, the reduced OI might mean lower liquidity and higher volatility in the near term. It also suggests that the speculative hype driving meme coins earlier this year might be fading, leaving prices vulnerable to further corrections.
Broader Market Trends Weighs On The Sector
The meme coin market’s struggles are not happening in isolation. The broader crypto market crash, impacted by macroeconomic pressures, and other factors like reduced trading volumes have weighed on the sentiments.
Amid this, the meme coins, as riskier assets, often become the first to react negatively during broader market corrections. Besides, the recent concerns over the Solana meme coins like LIBRA token, which many deem as a rug pull project, have further dampened market sentiment.
Here we explore how these cryptocurrencies are performing amid the ongoing market volatility.
How DOGE, SHIB, PEPE, & FLOKI Are Performing?
DOGE price today recorded marginal gains and exchanged hands at $0.2545 while recording a weekly plunge of over 1.5%. Notably, the crypto has touched a 30-day high and low of $0.4002 and $0.2117.
Simultaneously, the SHIB price today was down 0.2% to $0.00001538, while its one-day trading volume plummeted 19% to $208.42 million. This leading dog-themed meme coin declined 26% over the last 30 days while noting a slump of 5%.
On the other hand, PEPE Coin price was down 2%, with its trading volume falling 38% to $655.47 million. However, the FLOKI price today recorded some recovery and surged 4% over the last 24 hours to $0.00009840. This recent gain helped FLOKI to witness a weekly gain of 7% but still was down over 33% over the last 30 days.
The post DOGE, SHIB, PEPE, FLOKI, & Other Meme Coins Risk Falling, Here’s Why appeared first on CoinGape.
