An Unlikely Rally in a Falling Market

While the broader cryptocurrency market faced a significant downturn, a Solana-based meme coin known as Jelly-My-Jelly (JELLYJELLY) experienced a dramatic price surge. On November 4, as major assets like Bitcoin and Ethereum declined, JELLYJELLY defied the trend, climbing to a record high of $0.5 per token. This spike pushed its market capitalization to an impressive $500 million before volatility caused its value to retract.

The event highlighted the unpredictable nature of meme coins, which don’t always follow general market movements. However, the sudden and drastic rise in JELLYJELLY’s price quickly raised questions about the sustainability of its rally and the factors driving it.

Manipulation Allegations Surface

Analysis from blockchain analytics platform Bubblemaps soon uncovered suspicious on-chain activity. The platform identified seven previously dormant wallets that had withdrawn 20% of the total JELLYJELLY supply from the Gate.io and Bitget exchanges over the preceding four days. Such a large-scale withdrawal from centralized exchanges can severely limit available liquidity, making it easier for a small group of actors to manipulate the token’s price upward.

This activity creates a false impression of organic market momentum, which can lure in unsuspecting retail buyers. Further investigation suggests a potential pattern, linking this event to a similar incident involving JELLYJELLY on the decentralized exchange HyperLiquid in March 2025.

Risks and Market Integrity

While a surging price might seem attractive, the JELLYJELLY case serves as a stark reminder of the risks associated with assets potentially subject to market manipulation. Investors are advised to perform thorough due diligence before trading highly volatile tokens, especially those with concentrated wallet activity.

The incident also underscores the ongoing need for greater transparency and oversight within the cryptocurrency market. It highlights the challenge that regulators and trading platforms face in preventing market manipulation and protecting investors from orchestrated price movements.