autorenew
Pro Trader Shares Winning LP Strategy for Solana Meme Tokens in Slow Markets

Pro Trader Shares Winning LP Strategy for Solana Meme Tokens in Slow Markets

In the fast-paced world of Solana meme tokens, finding consistent ways to earn isn't always about spotting the next big pump—sometimes it's about smart liquidity providing (LP). A recent thread on X from trader Logical TA (@tendorian9) breaks down a repeatable strategy for LPing on tokens like MERIDIAN-SOL, using technical indicators to time exits and lock in profits. Whether markets are booming or dragging, this approach emphasizes discipline over perfection.

Logical TA highlights how they opened a DLMM (Dynamic Liquidity Market Maker) position on MERIDIAN-SOL via Meteora, a platform known for its advanced LP tools. DLMM allows for more flexible liquidity pools compared to traditional AMMs, letting providers adjust ranges to capture fees efficiently. In this case, the position netted $773.03 in fees, showcasing the potential even in slower times.

Screenshot of MERIDIAN-SOL LP position with charts and meme illustrations

The core of the strategy revolves around two key indicators converging for an exit signal:

  • RSI(2) above 90: The Relative Strength Index on a 2-period setting measures momentum. When it spikes over 90, it often signals overbought conditions, hinting at a potential pullback.
  • Price closes above Bollinger Bands Upper line: Bollinger Bands plot volatility around a moving average. A close above the upper band suggests extreme upward movement, which could precede a reversal.

By closing the position when these align, you capture fees from the initial pump without risking a rug or deeper correction. As Logical TA puts it, "Always exit on the first pump because we don't know if price wants to make new ATH or rugs from there. So be safe, take the profits and watch first. Better to cry in green than in red."

This isn't about chasing a flawless system—it's about executing consistently. "Your edge is not in the perfect strategy, it is in the perfect execution of an imperfect strategy," the post notes. And with a nod to the community, "LP is a lifestyle," tagging the LP Army (@met_lparmy) and Meteora (@MeteoraAG).

The thread sparked discussions in the replies. One user asked about screening tokens for LP in tough markets, to which Logical TA replied that their filters stay consistent, though they've evolved slightly with changes like Pump.fun's creator fees. Another inquired about entry strategies, with the response being straightforward: "Entry is just from the top usually, nothing special." Meteora even chimed in, praising the exit-on-first-pump rule as a "proven winner."

For meme token enthusiasts on Solana, this strategy is gold. Platforms like Meteora make it easier to LP on volatile assets without getting wrecked by impermanent loss. If you're new to this, start by checking out Meteora's docs on DLMM (Meteora DLMM Guide) and practice on smaller positions. In a space where memes can moon or doom overnight, turning LP into a steady side hustle could be your edge.

Stay tuned to Meme Insider for more breakdowns on Solana's hottest tokens and strategies to level up your game.

You might be interested