Meme Coin Futures Faces Major Deleveraging: What It Means

On-chain data reveals a significant drop in open interest for meme coin futures, indicating traders are reducing their leveraged positions. Dogecoin's futures open interest fell by 58.45% to $1.49 billion, down from $3.58 billion. Pepe's open interest decreased by 71.93% to $351 million, Bonk's by 75.10% to $178 million, and dogwifhat's by 69.83% to $197 million. Despite this deleveraging, meme coin prices have largely increased. Floki Inu saw a 24-hour price surge of 15.84% to $0.0001039, dogwifhat increased by 6.7% to $0.62, Bonk rose by 5.17%, Pepe by 4.03%, Dogecoin by 3.6% to $0.2513, and Shiba Inu by 2.6% to $0.00001529. The total trading volume in the meme coin market recently reached over $6.2 billion. Dogecoin's technical indicators, including a "death cross" where its Market Value to Realized Value ratio fell below its 200-day moving average, suggest a potential price decline. However, discussions around a potential Dogecoin ETF could influence future price action. Pepe's technical indicators are neutral, suggesting a period of price consolidation.