LUNA, JELLYJELLY, and High-Risk Memecoins Defy the Bears with Bullish Surge
Forget the doom and gloom. While traditional finance frets over interest rates, a corner of the crypto market is partying like it's 2021.
The Unlikely Rebels
Defying broad market caution, assets like LUNA and the whimsically named JELLYJELLY are charting aggressive recoveries. They're not alone—a swath of so-called 'risky' meme tokens is tagging along for the ride, flashing green on screens and sparking debates across trading forums. This isn't a cautious nibble; it's a full-throated rally in the sector everyone loves to hate.
Sentiment vs. The Chart
The move cuts directly against prevailing bearish narratives. Analysts preaching risk-off are watching, some bewildered, as liquidity floods back into these speculative pools. It's a stark reminder that crypto markets rarely move in unison and that crowd sentiment is often the best contrary indicator—right up until it isn't.
The Meme Engine Revs
What's fueling it? A familiar cocktail: trader boredom with sideways action, pockets of coordinated social media hype, and the eternal, cynical hunt for the next parabolic move. It's the kind of action that makes a CFA charterholder's eye twitch, proving once again that in crypto, 'fundamentals' can sometimes just mean a funny mascot and a viral tweet.
The surge raises the perennial question: is this a smart-money accumulation or the last gasp before a deeper correction? For now, the charts are talking, and they're shouting 'risk on.' Just don't tell your financial advisor.
Risky tokens expand their open interest
The common thread for risky tokens is their rising open interest, especially on Binance futures trading. The ability to bet on a strong directional MOVE is boosting liquidity in an otherwise slow altcoin market.
JELLYJELLY carried $13M in open interest on Binance, and a total open interest of $31M. LUNA open interest is at its highest in the past two years, following the relaunch of Terra 2.0 network.
Even FARTCOIN open interest moved to a one-month high, though mostly centered on Hyperliquid instead of Binance. Newer meme tokens like MOODENG also attempted vertical rallies in early December, though the price expansion was short-lived.
Previously, POPCAT went through a similar pattern of a sudden price spike, but reverted to all-time lows in the past three months. Hot meme tokens may attract traders attempting to recover their losses, but the recent batch of rallying tokens may also crash quickly, erasing the previous gains.
On-chain evidence also shows that some of the derivative market pumps may be deliberate. One whale accumulated JELLYJELLY just before the recent rally, currently holding 3.6M tokens.
Soon after the whale accumulated, the token broke out, rising by up to 92% in the past day to trade at $0.08. This is the second hike for JELLYJELLY to that level in the past month, signaling a regular turnover of interest.
The token has been previously known for becoming one of the most volatile tokens on Hyperliquid. It was removed from the futures market due to volatile prices and mass liquidations.
Old meme token rallies mostly tied to potential exit pumps
Unlike JELLYJELLY, the recent token rallies do not specifically aim to cause liquidations on Hyperliquid, and many tokens are active on other futures markets. The token’s volumes expanded from a low baseline to nearly $50M in the past 24 hours, recalling the previous spike in trading activity in early December.
The newly active risky tokens also come with added promotions from influencers, claiming the rally may be sustainable and the asset can run as high as $1. However, most traders remain skeptical, dismissing the vertical price moves as an attempt to boost price so whales can exit.
Recent rallies have faded within days. PIPPIN returned to $0.31 after setting a new peak at $0.35. The risky meme tokens also return to lower trading activity soon after reaching local peaks.
The smartest crypto minds already read our newsletter. Want in? Join them.
