Rate-Cut Hopes and Large Holder Inflows Spark 5% Surge in PEPE

PEPE Surges Over 5% as Market Bets on September Fed Rate Cut and On-Chain Accumulation Grows

Memecoin PEPE posted a gain of more than 5% over the past 24 hours, driven by a breakout above key resistance levels amid growing market confidence in a potential Federal Reserve rate cut this September.

According to CoinDesk Research’s technical model, the rally was supported by a consistent formation of higher lows — a pattern signaling sustained upward pressure. Each leg of the move was confirmed by spikes in trading volume, suggesting that larger players may be actively accumulating the token.

Despite the price breakout, trading activity in PEPE’s derivatives markets has sharply declined. CoinGlass data shows a 73% drop in derivatives volume since mid-July. However, on-chain metrics suggest growing conviction among long-term holders: the top 100 Ethereum addresses holding PEPE have increased their holdings by 2.36% over the last 30 days, while centralized exchange reserves fell by 2.4%, according to Nansen.

The broader rally in risk assets is being fueled by rising expectations of monetary policy easing. CME’s FedWatch tool now places a 93% probability on a 25 basis point cut at the Fed’s September meeting, with prediction platform Polymarket showing a 79% likelihood.

The shift in macro sentiment appears to be reinforcing risk-on behavior across crypto markets — with PEPE benefitting from both technical momentum and strategic on-chain accumulation.