Pepe (CRYPTO: PEPE) topped the meme coin charts on Monday, outshining heavyweights like Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB).

What happened: The frog-themed cryptocurrency spiked over 4% in the last 24 hours, partially offsetting the weekend decline. The coin's trading volume jumped 37% to $650.96 million, making it the second-most traded meme coin on the day.

DOGE and SHIB, on the other hand, experienced smaller jumps of 1.16% and 1.42%, respectively.

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Interestingly, PEPE's Open Interest, or the total money locked in its derivatives market, fell by nearly 3% in the last 24 hours, according to Coinglass.

Why It Matters: When OI declines while the spot price rises, it might indicate that short sellers are covering their positions, leading the price to rally. Since money is leaving the market and the price increase is not driven by buying interest, traders typically interpret this scenario as a bearish sign.

It's worth noting that the OI sailed to its nearly two-month highs last week but has since retreated over 25%.

Conversely, the percentage of traders placing long bets on the meme coin increased to 52% in the last 24 hours, suggesting that the rally might be sustained.

The latest rally also prompted diamond hands to add to their positions. According to IntoTheBlock, the balance held by long-term PEPE holders rose by 0.03% in the last 24 hours, indicating conviction in the coin’s growth potential.

Price Action:  At the time of writing, PEPE was exchanging hands at $0.000007374, up 4.45% in the last 24 hours, according to data from Benzinga Pro. Year-to-date, though, the cryptocurrency has plunged 63%.

Image via Shutterstock

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