Pepe Coin Price Prediction: Open Interest Slides 44%, Crash Imminent?

Pepe Coin price prediction: The first three weeks of June have been notably bearish for the crypto market following the lead of Bitcoin correction. With the BTC price falling below $64,000 on Friday, several altcoins especially the meme coin sector witnessed extended correction. However, defying the selling pressure and its declining volume, the Frog-theme meme coin PEPE is up 5% raising the question of a bull trap or relief rally before the next dump.

Also Read: Pepe Coin Price Prediction: Bullseye On $0.00002 As PEPE Leads Meme Coin Recovery

Pepe Coin Price Prediction: Open Interest Drops Signaling Investor Caution

Pepe Coin Price Analysis|Tradingview

Throughout the week, the pepe coin witnessed low volatility trying to sustain above the $0.00001 psychological level. Despite the supply pressure from the broader market, the memecoin price showcased notable resilience evidenced by the long-tail rejection on Tuesday. 

However, the near-term trend in Pepe is still bearish as the development of new higher and lower lows continues. The downward trajectory is led by a two-downsloping trendline indicating the formation of a flag pattern. 

The chart pattern is known to lead to a temporary downtrend and replenish the exhausted bullish momentum for the next leap.

From the recent peak of $0.00001725, the coin price dropped 34% to currently trade at $0.000011, while the market cap plunged to $4.72 Billion. Despite an intraday jump of 5%, the PEPE price witnessed a 6.7% drop in trading volume projecting a lack of interest from trades to enter a long position.

Also Read: Crypto Prices Today June 20: Bitcoin Holds Firm at $65K Amid Market Turbulence, FET & AGIX Soar Over 20%

Similarly, the open interest in Pepe coin has declined significantly, with Coinglass reporting a drop from $189.51 million in late May to $107 million now. This represents a decrease of approximately 43.5%. Note that this substantial reduction in open interest suggests a waning of trader commitment or liquidity in the market for Pepe, potentially indicating decreased confidence or interest from investors.

PEPE Futures Open Interest| Coinglass

Therefore, the two falling trendlines of the flag pattern are intact, the Frog meme coin may prolong the downward trajectory and may risk losing $0.00001 support.

On a contrary note, a breakout above the overhead trendline will signal a change in market sentiment and provide buyers with suitable support to lead a higher rally. The post-breakout rally could push the asset back to the $0.00001725 high.

Technical Indicator

• EMAs: The 20-day Exponential Moving Average offers dynamic resistance to the bullish bounce in PEPE price.
• MACD: A bearish crossover between the MACD (blue) and signal (orange) indicates the sellers are the current dominant force in this coin.

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