$BLESS My thoughts on trading memecoins:
Judging memecoins: low market cap, low circulating supply, highly controlled float, and rapid pump-and-dumps. Some coins drop from their highs and end up down to just a fraction—or even less—of their previous price, staying in a low-price range for a long time. The market maker often accumulates slowly at low levels. When the market’s circulating chips become scarcer, it takes only a small amount of capital to push the price up. That’s why memecoins are very suitable for small capital aiming for high-risk/high-reward setups, but not for large capital participation, because liquidity is insufficient and large players can easily become the market maker’s prey.
To find memecoins, start by checking the exchange’s top gainers list. Focus on market cap, circulating volume, and how concentrated the holdings (float) are. Then combine on-chain data to judge whether funds have been laid out in advance. If you can’t read on-chain data, you can use Twitter and AI-assisted analysis instead—pay attention to changes in whale wallets, the distribution of holdings, and whether there is continuous accumulation.
For going long on memecoins, I personally like to look for: long-term low levels, the daily chart just starting to turn bullish/strong, and funding rates being extremely negative. The more negative the funding rate is, the more crowded the shorts are. If the market maker then initiates a rally at that moment, it’s easy to form a squeeze—pushing up the price while gradually squeezing out short positions. So when the funding rate is extremely negative, it usually isn’t a good idea to short carelessly.
Shorting memecoins needs good timing. Don’t wait until they’ve dropped 30%-40% before chasing a short. The biggest characteristic of memecoins is that after a big selloff, they often bounce back quickly by 10%-20%. A truly comfortable short entry is usually in the early stage of the downtrend—around 5%-15%—and you should also consider funding rates, contract open interest (OI), and total contract value. If the funding rate is still positive and you see consecutive large bearish candles with OI dropping quickly, that may indicate real liquidation selling. In that case, you can try a right-side short, but make sure to use a small stop loss.
Ultimately, trading memecoins isn’t about a single indicator—it’s about comprehensive judgment: funding rates, on-chain data, float/holdings distribution, market cap size, candlestick patterns, position size, contract open interest (OI), and total contract value.
Memecoins aren’t value investments. At their core, it’s a battle of chips, liquidity, and sentiment. Small capital should rely on flexible opportunities, while large capital is better off staying away.
Click the group below to join and chat/learn together ⬇️
Judging memecoins: low market cap, low circulating supply, highly controlled float, and rapid pump-and-dumps. Some coins drop from their highs and end up down to just a fraction—or even less—of their previous price, staying in a low-price range for a long time. The market maker often accumulates slowly at low levels. When the market’s circulating chips become scarcer, it takes only a small amount of capital to push the price up. That’s why memecoins are very suitable for small capital aiming for high-risk/high-reward setups, but not for large capital participation, because liquidity is insufficient and large players can easily become the market maker’s prey.
To find memecoins, start by checking the exchange’s top gainers list. Focus on market cap, circulating volume, and how concentrated the holdings (float) are. Then combine on-chain data to judge whether funds have been laid out in advance. If you can’t read on-chain data, you can use Twitter and AI-assisted analysis instead—pay attention to changes in whale wallets, the distribution of holdings, and whether there is continuous accumulation.
For going long on memecoins, I personally like to look for: long-term low levels, the daily chart just starting to turn bullish/strong, and funding rates being extremely negative. The more negative the funding rate is, the more crowded the shorts are. If the market maker then initiates a rally at that moment, it’s easy to form a squeeze—pushing up the price while gradually squeezing out short positions. So when the funding rate is extremely negative, it usually isn’t a good idea to short carelessly.
Shorting memecoins needs good timing. Don’t wait until they’ve dropped 30%-40% before chasing a short. The biggest characteristic of memecoins is that after a big selloff, they often bounce back quickly by 10%-20%. A truly comfortable short entry is usually in the early stage of the downtrend—around 5%-15%—and you should also consider funding rates, contract open interest (OI), and total contract value. If the funding rate is still positive and you see consecutive large bearish candles with OI dropping quickly, that may indicate real liquidation selling. In that case, you can try a right-side short, but make sure to use a small stop loss.
Ultimately, trading memecoins isn’t about a single indicator—it’s about comprehensive judgment: funding rates, on-chain data, float/holdings distribution, market cap size, candlestick patterns, position size, contract open interest (OI), and total contract value.
Memecoins aren’t value investments. At their core, it’s a battle of chips, liquidity, and sentiment. Small capital should rely on flexible opportunities, while large capital is better off staying away.
Click the group below to join and chat/learn together ⬇️
