My top 3 High conviction meme plays on Base
Trading Memes on Base The Right Way!
In order to truly be successful in trading memes, you need to know the basics. What to look for and what to avoid is easier said than done in these cases.
In this newsletter we would be going over some of the techniques to have the best gains (read till the end for my high conviction plays).
First, head over to dexscreener. Filter the token list to look like the image below, liquidity >250k, 24h txns>300, 24h sells>30, 24h volume>100k.
This will allow you to easily avoid the rugs that are newly created. Also select Base chain from the left panel.
Next, to begin with, identifying which memecoins have potential requires a mix of market research and intuition:
Community Engagement: A strong, active community can be a good indicator of a memecoin'spotential. Look for vibrant discussions on social media platforms, Twitter, and Telegram groups.
Development Activity: Check for any signs of ongoing development and updates related to the memecoin. Regular updates suggest a committed team, which could mean a more stable future for the coin.
Market Sentiment: Utilize tools that analyze tweets and other social media posts to gauge the sentiment around specific memecoins. Positive sentiment can often precede price increases.
Also, memecoin markets are fraught with risks that need to be carefully managed:
Avoiding Hype Purchases: It's easy to get caught up in the excitement of a rapidly rising memecoin. However, buying in without research based on hype alone can lead to significant losses.
Recognizing Pump and Dump Schemes: Be wary of coins that experience sudden spikes in price and volume without any underlying reason. These are often the result of manipulation and can lead to sharp declines as quickly as they rose so be sure to use the filters in the previous step to help avoid these projects.
Finally, understanding when to enter and exit the market is as crucial as selecting the right coin:
Entry Points: Look for buying opportunities during dips when the market sentiment is still positive but prices have temporarily dropped.
Exit Points: Set profit targets before you enter a trade and stick to them, unless you have a clear reason to adjust your strategy based on new information. That being said, do not be quick to change your strategy as well, make informed decisions always.
The market is steadily in a downtrend so remember that most purchases now would reap profits later on, best to be patient and wait.
Currently, my highest conviction is on: