- Pepe memecoin has soared around 2% on a daily chart following a bullish sentiment in the crypto market, which sparked an euphoria in the crypto community.
- The price surge was witnessed after Canary Capital submitted a filing with the United States Securities and Exchange Commission to launch the first PEPE ETF.
- According to the price movement, the memecoin might face a small drop before entering a new cycle.
On April 10, Pepe memecoin price gained an upward momentum, where it rose by around 2% on a daily chart following a recent exchange-traded funds filing from Canary Capital.
The price surge in memecoin comes amid the positive sentiment in the overall crypto market, as Bitcoin (BTC) seems steady after breaking the $72,000 mark.
At the time of writing this, Pepe coin price is hovering around $0.000003644 with a staggering market capitalization of $1.5 billion, according to CoinMarketCap. Amid the news of exchange-traded funds, the daily trading volume also soared by around $361 million with a spike of 22%.
Canary Capital’s PEPE ETF Filing Boosts Memecoin Sentiment
On April 8, asset management firm Canary Capital submitted a filing with the United States Securities and Exchange Commission to issue the first spot exchange-traded fund linked to Pepecoin. If approved, the new product will be launched as Canary PEPE ETF.
After the success of Bitcoin ETFs, which currently hold $56.85 billion in total net inflows, many leading financial institutions are rushing to issue ETFs for other cryptocurrencies. This filing will allow regular investors to buy shares through normal brokerage accounts and gain direct exposure to the price of the popular memecoin. The fund will hold actual PEPE tokens on the Ethereum blockchain rather than using futures contracts or other indirect methods.
According to the official S-1 registration document submitted on April 8, the trust will hold the coins with a professional custodian for safety. It may also hold around 5% of its assets in Ethereum to cover small network fees.
The development is showing growing interest from Wall Street in memecoins. It comes after earlier filings for Dogecoin ETFs and comes as firms like Canary Capital expand beyond Bitcoin and Ethereum.
PEPE Price May Face Consolidation Before Next Bull Cycle
Despite the current spike in the memecoin, according to the currency price chart, there might be one more wave of decline for the Pepecoin in the short term. This drop could be a final downward momentum, which would then be followed by a period of consolidation lasting until September or October. After this phase, the trader believes PEPE will enter a new cycle along with Bitcoin.
According to experts, this consolidation phase will be in the range between $0.00189 and $0.00320. According to this view, this transitional period in the market between cycles would provide a great opportunity for investors to improve their portfolio before the start of the new cycle.
According to TradingView, technical indicators are suggesting a neutral zone for the memecoin. The 14-day Relative Strength Index is currently sitting at around 64, which means that the memecoin is neither overbought nor oversold. Also, there is room to surge higher without immediate exhaustion.
At the same time, the moving average convergence divergence line is revolving around a near-zero. This suggests no strong momentum in either direction right now. Similarly, short-term moving averages are giving mixed signals.
Also Read: Monero, Zcash Prices Surge as THORChain Announces Expansion
GoogleNews