PEPE falls despite Canary Capital filing for ETF with US SEC

$PEPE, the native token of the Pepe ecosystem, is down 6% in the last 24 hours and is trading below $0.0000035 at the time of writing on Thursday.

The meme coin’s price action remained muted despite Canary Capital filing an S-1 registration with the US Securities and Exchange Commission (SEC) on Wednesday to launch a Canary Pepe Exchange-Traded Fund (ETF).

The ETF filing indicates increasing institutional attention towards meme coins but has failed to push $PEPE’s price higher over the past few hours.

Furthermore, on-chain and derivatives data indicate that retail traders are cautious in the market, capping $PEPE’s recovery efforts.

Canary Capital files for Pepe ETF

$PEPE is down 6% in the last 24 hours despite Canary Capital, a leading digital asset manager, announcing on Wednesday that it has filed an S-1 registration with the US SEC to launch a Canary Pepe ETF.

Usually, an ETF filing for a crypto asset is a bullish sign, and it could potentially push $PEPE’s price higher in the long term. An ETF makes it easier for traditional investors to gain exposure to $PEPE without needing to purchase and store the cryptocurrency directly.

Furthermore, the SEC approving the ETF could add more legitimacy to $PEPE, increasing liquidity within the ecosystem and pushing the meme coin’s price higher.

However, in the short term, the market failed to respond positively to this latest development. $PEPE is down 6% as geopolitical uncertainty continues to drive broader market direction.

$PEPE’s CryptoQuant summary data reveals mixed conditions in the market, with early signs of a bearish bias.

Activity across futures markets suggests sellers’ dominance, reflecting negative sentiment among investors.

Despite that, the presence of large whale orders in spot and futures markets suggests a slightly optimistic outlook for Pepe.

The derivatives data also support the current bearish outlook. CoinGlass data shows Pepe’s long-to-short ratio reads 0.81 on Thursday, the lowest level in over a month.

By declining below one, this ratio reflects bearish sentiment in the markets, as more traders are betting on the meme coin to fall.

Finally, $PEPE’s funding rates data also flipped to negative earlier today and now reads -0.0081%. This shows that shorts are paying the longs and projecting a bearish outlook.

$PEPE could sink lower amid market selloff

Similar to other leading memecoins, the $PEPE/USD 4-hour chart remains extremely bearish. $PEPE failed to surge higher after closing above the 50-day Exponential Moving Average (EMA) at $0.0000036 on Tuesday.

At press time, $PEPE is trading at $0.000003467, indicating that the bears are now in control. If $PEPE continues to correct, it could extend the decline toward Tuesday’s low at $0.0000033.

A daily candle close below this level could extend the fall toward the February 6 low at $0.0000031.

The Relative Strength Index (RSI) on the 4-hour chart reads 55, pointing downward toward the neutral level, indicating fading bullish momentum.

The Moving Average Convergence Divergence (MACD) showed a bullish crossover last week, but remains subdued.

However, if the bulls regain control, $PEPE could extend the advance toward the 50-day EMA at $0.0000036 over the next few hours or days.