Key Highlights
- Canary Capital submitted an S-1 form to the SEC on Wednesday for a spot PEPE exchange-traded fund
- The token’s value dropped 4.58% on Wednesday, continuing its descent into Thursday below $0.0000036
- Trader sentiment turned bearish with the long-to-short ratio falling to 0.81, marking a multi-week low
- Negative funding rates at -0.0081% indicate short sellers are compensating long positions
- The memecoin maintains a $1.5 billion market capitalization with more than 420 trillion tokens in circulation
Canary Capital submitted an S-1 registration document to the U.S. Securities and Exchange Commission this Wednesday, requesting authorization to introduce a spot exchange-traded fund for Pepe. This proposed fund would track PEPE, the popular frog-themed memecoin that debuted in April 2023.
Contrary to expectations, the announcement failed to provide upward momentum for PEPE’s valuation. The digital asset experienced a 4.58% decline on Wednesday, with losses extending through Thursday as it traded beneath the $0.0000036 threshold.
Canary Capital has established itself as a notable player in memecoin ETF initiatives. Throughout the previous year, the investment firm submitted applications for exchange-traded funds following MOG and Pengu, positioning itself among the limited number of asset management companies pursuing funds connected to niche, meme-inspired digital currencies.
The registration document explicitly states that PEPE lacks functional utility. The token operates exclusively as a speculative investment vehicle with a circulating supply exceeding 420 trillion units.
Should the ETF receive regulatory approval, it would provide conventional investors with a pathway to gain PEPE exposure without directly purchasing and storing the token. Such approval might also enhance trading liquidity and confer additional credibility to the cryptocurrency. However, these potential benefits would only materialize following approval and implementation.
Market Data Reveals Bearish Trends
Blockchain analytics from CryptoQuant indicate conflicting market conditions with emerging bearish indicators. Futures trading activity suggests sellers are currently dominating market dynamics.
According to CoinGlass data, PEPE’s long-to-short ratio declined to 0.81 on Thursday. This represents the weakest reading recorded in more than thirty days. When this ratio falls below the 1.0 threshold, it signals that more market participants are positioning for price declines rather than gains.
Funding rates have also reversed into negative territory, registering -0.0081% on Thursday. Negative funding rates occur when short position holders compensate long position holders — a clear indication of bearish positioning within derivatives trading platforms.
While substantial whale transactions were observed across both spot and futures exchanges, which some market analysts interpret as mildly bullish, the prevailing sentiment remains predominantly cautious.
Critical Price Thresholds
PEPE temporarily surged beyond its 50-day Exponential Moving Average at $0.0000036 on Tuesday, recording gains exceeding 11%. However, the token failed to sustain this level and retreated the following trading session.
Should downward price action persist, the immediate support level rests at Tuesday’s intraday low of $0.0000033. A decisive break beneath this floor could drive PEPE toward the February 6 low established at $0.0000031.
The Relative Strength Index on the daily timeframe currently stands at 50 with a downward trajectory, indicating diminishing buying momentum. Meanwhile, the MACD indicator maintains a bullish crossover pattern initiated last week, which remains technically valid.
As of Wednesday evening at 5:49 p.m. ET, PEPE was exchanging hands at $0.0000036 with a total market capitalization of $1.5 billion.
The post Pepe (PEPE) Token Faces Decline Despite Canary Capital’s ETF Filing with SEC appeared first on Blockonomi.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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