PEPE fails to rally despite Canary Capital’s PEPE ETF filing with the 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.