{"id":14328,"date":"2025-02-21T13:46:58","date_gmt":"2025-02-21T13:46:58","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=14328"},"modified":"2025-02-21T13:46:58","modified_gmt":"2025-02-21T13:46:58","slug":"retailers-backing-off-from-leveraged-crypto-trades-meme-coin-open-interest-plunges-52","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=14328","title":{"rendered":"Retailers Backing Off From Leveraged Crypto Trades: Meme Coin Open Interest Plunges 52%"},"content":{"rendered":"<div>\n<p><span data-preserver-spaces=\"true\">Bitcoin, Ethereum, and even meme coin prices are not moving as rapidly as <\/span><span data-preserver-spaces=\"true\">they were<\/span><span data-preserver-spaces=\"true\"> back in December. Bitcoin is clawing back gains, while Ethereum remains below $3,000. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Solana is under pressure, trading below a multi-month support level<\/span><span data-preserver-spaces=\"true\">, while<\/span><span data-preserver-spaces=\"true\"> meme coins have dropped to around $75 billion in cumulative market cap.<\/span><\/p>\n<div class=\"chart crypto-chart-instance\" id=\"crypto_chart_67b86604d7fa5\" data-coin-id=\"sol-solana\">\n<div class=\"chart__header\">\n<div class=\"chart__info\">\n<div class=\"chart__info-icon\">\n                <img id=\"crypto_chart_67b86604d7fa5-chart__info-icon-img\">\n            <\/div>\n<div class=\"chart__info-name\" id=\"crypto_chart_67b86604d7fa5-chart__info-name\">&#8211;<\/div>\n<div class=\"chart__info-label\">Price<\/div>\n<div class=\"chart__info-label\">Market Cap<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67b86604d7fa5-chart__info-symbol\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67b86604d7fa5-chart__info-price\">&#8211;<\/div>\n<div class=\"chart__info-value\" id=\"crypto_chart_67b86604d7fa5-chart__info-marketcap\">&#8211;<\/div>\n<\/p><\/div>\n<div class=\"chart__controls\">\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--24h\" id=\"crypto_chart_67b86604d7fa5-btn-24h\">24h<\/button><br \/>\n                <button class=\"chart__button chart__button--7d\" id=\"crypto_chart_67b86604d7fa5-btn-7d\">7d<\/button><br \/>\n                <button class=\"chart__button chart__button--30d\" id=\"crypto_chart_67b86604d7fa5-btn-30d\">30d<\/button><br \/>\n                <button class=\"chart__button chart__button--1y\" id=\"crypto_chart_67b86604d7fa5-btn-1y\">1y<\/button><br \/>\n                <button class=\"chart__button chart__button--all-time\" id=\"crypto_chart_67b86604d7fa5-btn-all-time\">All Time<\/button>\n            <\/div>\n<div class=\"chart__controls-group\">\n                <button class=\"chart__button chart__button--logarithmic\" id=\"crypto_chart_67b86604d7fa5-btn-log\">Log<\/button>\n            <\/div>\n<\/p><\/div>\n<\/p><\/div>\n<div class=\"chart__container\">\n        <canvas class=\"chart__canvas\" id=\"crypto_chart_67b86604d7fa5-cryptoChart\"><\/canvas>\n    <\/div>\n<\/div>\n<h2><strong><span data-preserver-spaces=\"true\">Meme Coin Traders Unwinding Their Longs: Time to Sell<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">Traders are apprehensive, and with the risk of a sharp correction that will likely flush out speculators, Glassnode analysts have <\/span><a class=\"general-link\" href=\"https:\/\/studio.glassnode.com\/charts\/57828689-1488-4b0e-523c-6ea2e3ac8d8f\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">noted<\/span><\/a><span data-preserver-spaces=\"true\"> yet another development.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Positions are being unwound on exchanges like Binance, OKX, and Bybit, where traders can place leveraged trades. While this trend is widespread, there is a notable decline in futures open interest among meme coins. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">In the last month alone, meme coin open interest has fallen a staggering 52%<\/span><span data-preserver-spaces=\"true\">, and that<\/span><span data-preserver-spaces=\"true\"> number could rise further now that Dogecoin, TRUMP, PEPE, and even WIF prices have dropped double digits in the past week alone.<\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/GkPN2XHX0AITP4X?format=jpg&amp;name=large\" alt=\"Image\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/studio.glassnode.com\/charts\/57828689-1488-4b0e-523c-6ea2e3ac8d8f\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">The drop in open interest points to a shift in sentiment.<\/span><span data-preserver-spaces=\"true\"> Since crypto prices are sensitive to hype, the more traders choose to stay on the sidelines, the faster prices tend to fall. Over 11.1% of leveraged Bitcoin trades have been closed in the last month across multiple exchanges.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Meanwhile, over 23% of leveraged ETH positions have been closed, while meme coin traders are scrambling to exit, with over 52% of positions closed since the <a class=\"general-link\" title=\"Will TRUMP Meme Coin Become A Top 10 Coin In 3 Months?\" href=\"https:\/\/99bitcoins.com\/news\/will-trump-meme-coin-become-a-top-10-coin-in-3-months\/\" rel=\"\">TRUMP meme coin<\/a> launched. Notably, traders are rapidly exiting Pepe, Bonk, and Shiba Inu positions, where open interest has dropped an average of 70%.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Interestingly, only 6.2% of Solana leveraged positions have been closed during this period<\/span><span data-preserver-spaces=\"true\">, though<\/span><span data-preserver-spaces=\"true\"> SOL is one of the biggest losers in the past 30 days.<\/span><\/p>\n<h2><strong><span data-preserver-spaces=\"true\">Solana Crypto Prices Under Pressure: What\u2019s Next For SOL<\/span><\/strong><\/h2>\n<p><span data-preserver-spaces=\"true\">Dropping open interest coincides with price declines. Bitcoin may be holding firm but is trading below $100,000. On the other hand, Ethereum has yet to crack $3,000, while Solana is down over 40% in the last month, falling from $295 to around $175\u2014a key support level.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full\" src=\"https:\/\/www.tradingview.com\/x\/BhCkBpJn\/\" width=\"1499\" height=\"859\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/www.tradingview.com\/symbols\/SOLUSDT\/\" target=\"_blank\" rel=\"noopener nofollow\">SOLUSDT<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">If Bitcoin prices recover, lifting altcoins in the process, traders may flock back, looking to capitalize on a possible resumption of the Q4 2024 uptrend. However, after the plunge in February and the general apprehension\u2014coupled with the realization that meme coins funneled capital away from top altcoins\u2014traders will likely remain cautious. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">If<\/span><span data-preserver-spaces=\"true\">, <\/span><span data-preserver-spaces=\"true\">conversely<\/span><span data-preserver-spaces=\"true\">, prices drop further, with Solana losing $150 and Bitcoin falling below $90,000, widespread panic selling could ensue, leading to the unwinding of billions worth of leveraged trades.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Reflecting this trend is the drop in funding rates. Glassnode analysts <\/span><span data-preserver-spaces=\"true\">observe<\/span><span data-preserver-spaces=\"true\"> that while Ethereum and Bitcoin funding rates are slightly negative, leveraged traders taking long positions on Solana are <\/span><span data-preserver-spaces=\"true\">being paid<\/span><span data-preserver-spaces=\"true\">, as its funding rate is also <\/span><span data-preserver-spaces=\"true\">negative<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/pbs.twimg.com\/media\/GkPOLuaXQAAbr8N?format=jpg&amp;name=4096x4096\" alt=\"Image\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/x.com\/glassnode\/status\/1892583306215960605\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">The shift from positive to negative over the last month indicates more traders are exiting and unwinding their long positions. Since exiting longs means selling, this sell-off has <\/span><span data-preserver-spaces=\"true\">been exacerbated<\/span><span data-preserver-spaces=\"true\">, creating a domino effect.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">It remains to <\/span><span data-preserver-spaces=\"true\">be seen<\/span><span data-preserver-spaces=\"true\"> how<\/span><span data-preserver-spaces=\"true\"> open interest will evolve in the next few days.<\/span><span data-preserver-spaces=\"true\"> As of this writing, most traders are neutral (42), according to the CoinMarketCap <\/span><a class=\"editor-rtfLink\" href=\"https:\/\/coinmarketcap.com\/charts\/fear-and-greed-index\/\" target=\"_blank\" rel=\"noopener nofollow\"><span data-preserver-spaces=\"true\">Fear and Greed Index<\/span><\/a><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-207869\" src=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-21T104337.895.png\" alt=\"\" width=\"1537\" height=\"640\" srcset=\"https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-21T104337.895.png 1537w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-21T104337.895-300x125.png 300w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-21T104337.895-1024x426.png 1024w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-21T104337.895-768x320.png 768w, https:\/\/99bitcoins.com\/wp-content\/uploads\/2025\/02\/Screenshot-2025-02-21T104337.895-50x21.png 50w\" sizes=\"auto, (max-width: 1537px) 100vw, 1537px\"><\/p>\n<p>(<a class=\"general-link\" href=\"https:\/\/coinmarketcap.com\/charts\/fear-and-greed-index\/\" target=\"_blank\" rel=\"noopener nofollow\">Source<\/a>)<\/p>\n<p><span data-preserver-spaces=\"true\">However, over the past month, traders have been <\/span><span data-preserver-spaces=\"true\">mostly<\/span><span data-preserver-spaces=\"true\"> fearful, with fear and anxiety gripping the market since early February.<\/span><\/p>\n<p><b>EXPLORE:\u00a0<\/b><a href=\"https:\/\/99bitcoins.com\/cryptocurrency\/new-coinbase-listings\/\"><b>15 New &amp; Upcoming Coinbase Listings to Watch in 2025<\/b><\/a><\/p>\n<p><a href=\"https:\/\/discord.gg\/B7Uk6agkqj\" target=\"_blank\" rel=\"nofollow noopener nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow nofollow\"><b>Join The 99Bitcoins News Discord Here For The Latest Market Updates<\/b><\/a><\/p>\n<div class=\"nnbtc-key-takeaways\">\n<h3 class=\"nnbtc-key-takeaways__title\">Meme Coin open interest falls by over 52%<\/h3>\n<ul class=\"nnbtc-key-takeaways__list\">\n<li class=\"nnbtc-key-takeaways__list-item\">\n        Crypto momentum fading, Bitcoin, altcoins, and meme coins retracing     <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         Meme coin open interest fall by 52% in one month     <\/li>\n<li class=\"nnbtc-key-takeaways__list-item\">\n         Funding rates also turn negative on leading crypto perpetual exchanges     <\/li>\n<\/ul><\/div>\n<p>The post <a href=\"https:\/\/99bitcoins.com\/news\/retailers-backing-off-from-leveraged-crypto-trades-meme-coin-open-interest-plunges-52\/\">Retailers Backing Off From Leveraged Crypto Trades: Meme Coin Open Interest Plunges 52%<\/a> appeared first on <a href=\"https:\/\/99bitcoins.com\/\">99Bitcoins<\/a>.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Bitcoin, Ethereum, and even meme coin prices are not moving as rapidly as they were back in December. Bitcoin is clawing back gains, while Ethereum remains below $3,000. Solana is under pressure, trading below a multi-month support level, while meme coins have dropped to around $75 billion in cumulative market cap. &#8211; Price Market Cap [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-14328","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/14328","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=14328"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/14328\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=14328"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=14328"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=14328"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}