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

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.

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.