Solana-based memecoin Pepe has plunged 6.1% in the last 24 hours, defying bullish expectations following Canary's recent ETF filing. The sharp correction comes despite PEPE holding modest weekly and monthly gains of 5.3% and 5.8%, respectively, while remaining down 43.4% from its April 2025 peak. Market analysts are now questioning whether this dip presents a buying opportunity or signals deeper volatility ahead for the popular frog-themed asset.

PEPE Crashes Despite ETF Filing: Why?

Pepe (PEPE) saw a rebound after the US and Iran announced a two-week ceasefire. Bitcoin (BTC) climbed to $72,000, pulling the larger market along with it. However, BTC faced a rejection at the $72,000 level, as it has done on multiple occasions over the last few months. BTC’s correction may have led to a market-wide dip. Moreover, high-risk assets, especially memecoins such as PEPE, have faced the brunt of the impact.

While Canary’s ETF filing is a bullish development for PEPE, the larger market is not ready for risky investments. Interest rates are still high and a rate cut in April is unlikely. Moreover, the US-Iran ceasefire is still shaky and investor confidence is quite low.

Pepe (PEPE) could see some relief if Bitcoin (BTC) can break past its current resistance level in the $72,000-$73,000 range. This resistance level has proven to be quite strong, and demand above this price range is very low. If the Federal Reserve lowers interest rates after its May meeting, there is a chance that risky assets could see some positive price movements. However, macroeconomic uncertainties remain a point of concern and geopolitical issues continue to bar investors from risky assets, especially memecoins such as PEPE.