If you've been knee-deep in the crypto trenches like I have—first as CoinDesk's editor-in-chief, now curating the chaos of meme tokens at Meme Insider—you know one thing for sure: markets don't move in straight lines. They zigzag like a caffeinated squirrel on a blockchain. That's exactly the vibe in a recent X thread from @bunjil, the self-proclaimed "romance maximalist" who's dropping trading gems that could save your portfolio from a nasty tumble.
Let's break it down. Bunjil's thread starts with a teaser from October 22: "these types of moves always (and I mean always) precede further moves. Smart traders are preparing for that obvious inevitable scenario—and no, it’s not the one you think lol. Take a risk and always protect your capital."
Classic crypto speak, right? He's nodding to those familiar price pumps or dumps—think a meme token like $DOGE spiking on a Elon tweet or $PEPE dipping after a whale sell-off. But here's the kicker: these aren't isolated events. They're the opening act. Bunjil's warning us not to get tunnel-visioned on the immediate hype. Instead, gear up for what's next, and yeah, that "lol" hints it's probably the counterintuitive twist nobody sees coming.
Fast-forward to his follow-up post on October 26, and the plot thickens: "now that the obvious move has played out you need to keep an eye out for the consequence of that move. Most cannot think about the second and third order effects of market movements. Certain indicators will be key here but they may also lead you astray. Just run the numbers."
Oof. If you're new to this, "second-order effects" are like the ripples after you toss a stone in a pond. The first-order? The splash (say, a token's price jumps 50% on news). Second-order? The waves hitting the shore (maybe liquidity dries up, triggering a flash crash). Third-order? The frog jumping in because the ripples disturbed its nap (institutional FUD kicks in, shaking the whole sector). Most traders chase the splash and miss the frog—big mistake in meme token land, where volatility is the only constant.
Bunjil's not just philosophizing; he's handing out a playbook. Protect your capital first—use stop-losses, diversify beyond that one hyped Solana meme coin, and never bet the farm on "obvious" scenarios. Those technical indicators? RSI, MACD, whatever your charting tool spits out—they're handy, but don't worship them. Markets are human (or bot-driven) beasts, full of black swans. His advice? "Just run the numbers." Crunch the data yourself: backtest scenarios, model liquidity flows, simulate whale dumps. Tools like TradingView or even Python scripts on historical CoinGecko data can turn guesswork into edge.
Why does this matter for us meme token hunters? In a space where $WIF goes viral on a dog meme and tanks on a regulatory whisper, ignoring those hidden effects is portfolio suicide. Bunjil's thread is a reminder: trading isn't gambling if you think three steps ahead. It's chess on steroids.
So, next time you're eyeing that next pump.fun launch or debating a position in $BONK, pause. What's the ripple? The frog? Run those numbers, protect that stack, and maybe—just maybe—you'll be the smart trader Bunjil's cheering for.
What do you think—seen any wild second-order surprises lately? Drop your takes in the comments, and stay tuned to Meme Insider for more decoded threads turning X noise into actionable alpha.