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PEPE Price Stalls Despite Canary Capital’s PEPE ETF Filing With the SEC

PEPE Price Stalls Despite Canary Capital’s PEPE ETF Filing With the SEC

CryptonewslandCryptonewsland2026/05/25 05:51
By:Cryptonewsland
  • Canary Capital filed for a PEPE ETF, boosting long-term institutional interest in meme coins.
  • PEPE price stayed weak as bearish derivatives data reflected cautious trader sentiment.
  • PEPE failed above the 50-day EMA, risking another decline toward key support levels.

PepeCoin — PEPE, returned to the spotlight after Canary Capital filed for a PEPE ETF with the US Securities and Exchange Commission. Many traders expected the filing to trigger strong buying activity across the meme coin market. Instead, PEPE failed to build momentum and continued trading under pressure on Thursday. The muted reaction surprised many investors because ETF-related news often sparks aggressive rallies in crypto markets. While the filing strengthened PEPE’s long-term legitimacy, short-term sentiment remained weak as broader market uncertainty continued weighing on traders.

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— AIR3 Agent (@AIRewardrop) May 23, 2026

Canary Capital Brings PEPE Closer to Traditional Finance

Canary Capital officially filed an S-1 registration with the US SEC on Wednesday to launch a Canary Pepe ETF. The move highlighted growing institutional interest in meme coins, especially after large investment firms started exploring crypto-focused products beyond Bitcoin and Ethereum. A PEPE ETF could eventually allow traditional investors to gain exposure to the token without dealing with exchanges, wallets, or private keys. Such products often attract investors who prefer regulated investment options over direct crypto ownership.

The filing also represents another major milestone for meme coins. Assets like PEPE once relied heavily on online hype and retail speculation. Now, institutional firms continue exploring ways to package meme coins into traditional investment vehicles. That shift shows how far the sector has evolved during recent years. Increased institutional participation could improve market liquidity and strengthen long-term market confidence surrounding PEPE.

Despite the positive headline, traders showed little excitement after the announcement. PEPE declined 4.58% and continued moving lower during Thursday trading. Broader market conditions appeared to overshadow the ETF news completely. Rising geopolitical tensions and cautious sentiment across financial markets pushed investors toward defensive positioning. High-risk assets like meme coins often struggle during uncertain macroeconomic conditions because traders avoid volatility when confidence weakens.

PEPE Struggles Below a Critical Technical Level

PEPE attempted a recovery earlier this week after surging more than 11% on Tuesday. The rally briefly pushed prices above the 50-day Exponential Moving Average near $0.0000036. That breakout initially strengthened bullish expectations and suggested buyers could regain control after several weeks of weakness. However, the recovery quickly lost momentum as sellers returned near the resistance zone.

The meme coin failed to hold support above the 50-day EMA and slipped back below that level shortly afterward. Current price action now shows weakening momentum as traders continue reducing bullish exposure. If selling pressure continues, PEPE could revisit Tuesday’s low near $0.0000033. A breakdown below that support level may trigger another decline toward February’s low around $0.0000031.

Technical indicators currently present mixed signals for short-term traders. The Relative Strength Index sits near the neutral 50 level and continues trending lower, suggesting bullish momentum keeps fading. However, the MACD indicator still maintains a bullish crossover from last week. That signal could support another recovery attempt if broader market sentiment improves during the coming sessions.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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