PEPE Surges Over 5% Amid Fed Rate-Cut Bets and Whale Accumulation

Memecoin PEPE jumped more than 5% in the past 24 hours, breaking above a key resistance level on strong volume and a clear pattern of higher lows—an indication of sustained buying pressure, according to CoinDesk Research’s technical analysis model.

Each leg higher was backed by volume spikes, suggesting accumulation by larger market participants. However, despite the technical momentum, underlying market signals paint a more complex picture.

Derivatives activity tied to PEPE has cooled significantly, with trading volume in PEPE futures contracts falling 73% since mid-July, per CoinGlass. At the same time, on-chain data from Nansen shows that the top 100 Ethereum wallets have increased their PEPE holdings by 2.36% over the past month, while centralized exchange reserves have dropped by 2.4%—indicating tokens are moving into long-term storage.

The broader crypto rally, including PEPE’s surge, appears to be driven by increasing investor confidence that the Federal Reserve will cut interest rates by 25 basis points in September. The CME FedWatch tool now shows a 93% probability of a rate cut, while Polymarket places the odds at 79%.

This macro-driven shift in sentiment has lifted risk assets across the board, with PEPE benefiting from both technical breakouts and supportive fundamentals.