Popular memecoin PEPE has risen more than 5% over the last 24 hours, powered by a high-volume breakout that helped the token’s price surge above a recent resistance level.

The upward trend formed on a series of higher lows, a sign of sustained buying interest, according to CoinDesk Research's technical analysis data model.. Volume spikes accompanied each move higher, suggesting that larger investors may be accumulating.

While the rally has technical strength, the broader context is more complicated.

Trading volume across PEPE derivatives contracts has dropped 73% since mid-July according to CoinGlass data. That drop in activity comes amid a rise in the PEPE token holdings of the 100 largest addresses on the Ethereum network. Over the past 30 days, these addresses added 2.36% to their holdings, while exchange reserves dropped by 2.4%, per Nansen.

The rise of PEPE’s price is likely tied to an ongoing rally in risk assets, driven by growing expectations that the Federal Reserve will cut interest rates by 25 bps in September. The CME’s FedWatch tool is currently weighing a 93% chance of that happening, while Polymarket traders place chances at 79%.

Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.