Open Interest Spike Signals Growing Leverage in Memecoins

[tradelikepro]

Beneath the price action, derivatives data shows traders aggressively increasing exposure. Pepe’s open interest surged 77% in 24 hours to $441 million, while Dogecoin’s open interest climbed to $1.71 billion, up around 4.5%. Smaller tokens like PENGU also saw sharp increases, suggesting broad-based speculative positioning.

Rising open interest alongside higher prices typically signals bullish conviction, but it also brings risk. Daily derivatives trading volume for memecoins jumped 35% to $4.75 billion, with PEPE alone posting a 402% spike. Platforms promoting ultra-high leverage trading have amplified this activity, increasing the chance of sharp liquidations if momentum reverses.

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oi exploding this fast always makes me nervous, feels bullish now but liquidation city if it flips