PEPE Rallies Over 5% Amid Rate-Cut Bets and Strategic Whale Accumulation
Memecoin PEPE climbed more than 5% in the past 24 hours, buoyed by a high-volume breakout and growing market optimism over a potential U.S. Federal Reserve interest rate cut in September.
According to CoinDesk Research’s technical model, the rally was characterized by a sequence of higher lows — a bullish signal that suggests sustained buying interest. These price moves were supported by volume spikes, often associated with accumulation by larger market participants.
Despite strong price action, PEPE’s derivatives market has shown a notable decline in activity. Data from CoinGlass indicates a 73% drop in derivatives trading volume since mid-July. However, on-chain activity paints a more constructive picture: the top 100 Ethereum-based PEPE wallets have increased their holdings by 2.36% over the last 30 days, while centralized exchange reserves have declined by 2.4%, according to Nansen.
The memecoin’s gains are unfolding alongside a broader rally in risk assets, underpinned by expectations of monetary easing. The CME FedWatch Tool now assigns a 93% probability to a 25 basis point cut in September, while prediction market Polymarket puts the odds at 79%.
As traders position ahead of a potential policy pivot, PEPE appears to be catching tailwinds from both macro sentiment and targeted on-chain accumulation — reinforcing its role as a speculative favorite in a shifting risk environment.
