The data platform Scopescan pointed out in a recent article that after analyzing the data of 100 meme coins, they found that the 24-hour success rate of buy/sell signals for DEX was higher than other signals. They also found that most of the meme coin surges only occur once and when the token starts to fall, it is likely to fall completely.
The article focuses on the following 4 key strategies when trading memecoins based on the analysis of 100 meme coin data, emphasizing that the “buy low, sell high” strategy may be foolish for other tokens, but not for meme coins. The 24-hour success rate of DEX buy/sell (overbought and oversold) signals is higher than other trading signals. Meme coins are all about communities, and the signal of “increasing holders” (when there is a large number of new holders) has an average success rate of 65%, and for some coins, it can even reach over 90%.
The article also mentions that opinions from KOLs apply to tokens with a market value of over $100 million, but not to low-market-value tokens. For meme coins with a market value of over $100 million, the 24-hour success rate of “negative/positive sentiment” signals on Twitter is 55%, and the 72-hour success rate is 66%. However, for tokens with a market value ranging from $10 million to $100 million, the success rate of these signals drops to the range of 30% to 40%.
The article concludes by advising against making smart money follow-up trades without understanding the details. Many people hope to track smart money in order to enter low-market-value tokens as early as possible. However, for meme coins with a market value of less than $10 million, the success rate of smart money purchase signals is only 30%. On the other hand, the success rate of following smart money sell signals is over 60%, indicating that some smart money uses follow-up traders to exit liquidity.
Scopescan also stated that they will soon release a full report, further explaining the detailed data of the signals and more relevance between meme coin prices and their indicators.