Despite a general market downturn, risky tokens from meme and AI projects are experiencing a resurgence. Old tickers like LUNA, JELLYJELLY, and other former meme sensations are reviving, leading to concerns about potential market manipulation.
While meme tokens as a whole are showing signs of slowing down, specific tokens such as LUNA, JELLYJELLY, and PIPPIN have gained significant attention. Several forgotten assets have attracted interest from whales, sparking speculation about deliberate market manipulation.
Tokens that have seen rallies in the past week include:
- •LUNA
- •LUNC
- •JELLYJELLY
- •PIPPIN
- •FARTCOIN
These tokens have risen due to a combination of whale attention and accumulation. The meme market continues to see whales shifting between tokens, selecting current performers from a limited pool. The trending tokens are driven by a mix of decentralized exchange (DEX) activity and derivative trading.
Risky Tokens Expand Their Open Interest
A common characteristic of these risky tokens is their rising open interest, particularly on Binance futures trading. The ability to bet on strong directional moves is injecting liquidity into an otherwise sluggish altcoin market.
JELLYJELLY has recorded $13 million in open interest on Binance, with a total open interest of $31 million. LUNA's open interest is at its highest in the past two years, following the relaunch of the Terra 2.0 network.
Even FARTCOIN saw its open interest move to a one-month high, although this activity is primarily centered on Hyperliquid rather than Binance. Newer meme tokens like MOODENG also attempted sharp rallies in early December, but these price expansions were short-lived.
Previously, POPCAT experienced a similar pattern of a sudden price spike, only to revert to all-time lows within the past three months. While hot meme tokens can attract traders looking to recover losses, the recent batch of rallying tokens may also crash quickly, erasing their previous gains.
On-chain evidence suggests that some of the derivative market pumps may be deliberate. One whale accumulated JELLYJELLY just before its recent rally and currently holds 3.6 million tokens.
Shortly after this accumulation, the token broke out, increasing by up to 92% in the past day to trade at $0.08. This marks the second significant surge for JELLYJELLY to this level within the past month, indicating a recurring interest.
The token has previously been known for its volatility on Hyperliquid. It was removed from the futures market due to its volatile prices and mass liquidations.
Old Meme Token Rallies Tied to Potential Exit Pumps
Unlike JELLYJELLY, the recent rallies in other tokens are not specifically aimed at causing liquidations on Hyperliquid, with many tokens active on different futures markets. The trading volumes for these tokens have expanded from a low baseline to nearly $50 million in the past 24 hours, reminiscent of the trading activity spike in early December.
These newly active risky tokens are also being promoted by influencers who claim the rally may be sustainable and that the assets can reach higher price points. However, most traders remain skeptical, dismissing these sharp price movements as attempts to inflate the price for whales to exit their positions.
Recent rallies have faded within days. For instance, PIPPIN returned to $0.31 after reaching a new peak of $0.35. These risky meme tokens typically see a decrease in trading activity soon after reaching local peaks.