PEPE Rises 5% on Rate-Cut Optimism and Whale Accumulation
PEPE, the popular memecoin, climbed over 5% in the last 24 hours, fueled by a breakout that pushed the token beyond a key resistance level. The rally came alongside a broader uptick in risk assets, supported by growing market expectations of a Federal Reserve interest rate cut in September.
According to CoinDesk Research’s technical model, the upward momentum was marked by a pattern of higher lows — a classic signal of sustained buying interest. Each leg up was accompanied by a spike in volume, suggesting accumulation by larger market participants.
Despite the technical strength, activity in PEPE derivatives has fallen sharply. CoinGlass data shows a 73% drop in derivatives trading volume since mid-July, indicating reduced speculative engagement.
On-chain data, however, paints a different picture. The 100 largest Ethereum-based PEPE holders have increased their collective holdings by 2.36% over the past 30 days, while exchange reserves fell by 2.4%, according to Nansen. This shift signals ongoing accumulation and reduced sell-side pressure.
The price movement aligns with broader macroeconomic sentiment. Markets are increasingly betting on a 25 basis point rate cut by the Fed in September, with CME’s FedWatch tool showing a 93% probability. Prediction market Polymarket estimates a slightly lower chance at 79%.
Overall, PEPE’s rally reflects a confluence of technical strength, strategic accumulation, and favorable macroeconomic sentiment driving renewed interest in risk assets.
