What You Should Know:
- PEPE has surged over 5% in just 24 hours, triggered by a significant breakout in trading volume that allowed it to surpass the resistance level.
- Despite a notable 73% decline in trading activity for PEPE derivatives since mid-July, the largest 100 Ethereum addresses have increased their holdings by 2.36% over the past month.
- This rally in prices aligns with expectations that the Federal Reserve will cut interest rates in September.
Popular memecoin PEPE has climbed more than 5% over the last 24 hours, propelled by a high-volume breakout that allowed its price to rise beyond a recent resistance level.
The upward momentum reflected a series of higher lows, indicating consistent buying interest, according to CoinDesk Research’s technical analysis data model. Each upward movement corresponded with volume spikes, hinting at accumulation by larger investors.
PEPE Chart
While the rally possesses technical strength, the overall context remains complex. Trading volume for PEPE derivatives contracts has fallen 73% since mid-July, as reported by CoinGlass. This decrease in trading activity coincides with a growth in PEPE token holdings among the largest Ethereum addresses, which have added 2.36% to their holdings whilst exchange reserves decreased by 2.4%, per Nansen.
The increase in PEPE’s price may be linked to an ongoing rally in risk assets, amplified by a rising expectation for the Federal Reserve’s interest rate reduction of 25 bps in September. The CME FedWatch Tool currently indicates a 93% likelihood of this event, while Polymarket traders estimate a 79% chance.
