If you're diving into the wild world of meme tokens on blockchain platforms like Solana, having a solid framework can make all the difference between a winning trade and a quick loss. Recently, a thread on X from @narkokek highlighted a detailed video breakdown of @in2nguyen's 10-step process for market analysis, originally shared in an advanced bootcamp with MeteoraAG. This cheat sheet is perfect for liquidity providers (LPs) and traders looking to navigate dynamic liquidity market makers (DLMM) pools effectively.

While not every meme token play will require all steps, this process helps you evaluate opportunities thoroughly before committing capital. Let's break it down step by step, with simple explanations for key terms to keep things accessible.

Step 1: Define Goals and Timeframe

Start by clarifying what you're aiming for. Are you going for a quick flip in 30 minutes to a few hours (short-term), a multi-day hold (mid-term), or something longer? For meme tokens, which often spike on hype, short-to-mid-term plays are common. Factor in your capital size and target ROI—say, aiming for 10% on a speculative trade. This sets boundaries to manage risk, especially in volatile markets where a single dump can wipe out gains.

Step 2: Check the Macro Picture of Bitcoin

Bitcoin often dictates the broader crypto market's direction. Use tools like liquidation heatmaps on CoinGlass to spot where big players might hunt stops. Yellow areas indicate high liquidity levels, signaling potential support or resistance. In a crab market (sideways movement), this helps avoid bad entries on meme tokens that could get dragged down by BTC dips.

Step 3: Analyzing On-Chain Data

Dive into on-chain metrics for transparency. Look at wallet distribution and volume using tools like GMGN.ai. Aim for a balanced ratio: high volume with low wallet count might mean supply control by whales, leading to chaotic charts. For a $500K market cap meme token, you'd want at least 1,000 unique wallets for better distribution. Categorize wallets (fresh, snipers, insiders) and watch for bundles (clusters of connected wallets often used by bots).

Step 4: Evaluating Tokenomics and Utility (If Any)

Meme tokens thrive on hype, but check basics like supply distribution via bubble maps on GMGN. Even bubbles indicate healthy distribution; one giant bubble screams supply control. Review percentages held by top wallets, exchanges, or pools. For utility, if the token has any (rare in pure memes), assess it briefly—though most rely on community and catalysts.

Step 5: Run a Multi-Timeframe Technical Analysis

Use support and resistance levels across timeframes: short-term (5-30 minutes) for quick entries, long-term (4-24 hours) for bigger picture. Tools like TradingView help plot these. For meme tokens, watch for "god candles" (massive initial wicks) as red flags for sniper bots dominating early trading.

Step 6: Gauging Sentiment and Catalysts

Scan X (formerly Twitter) for buzz by searching the ticker + contract address. This pulls up mentions, KOL (key opinion leader) posts, and community sentiment. Positive catalysts like team updates or whale buys can fuel pumps; negative ones (e.g., supply control allegations) signal exits. Doom-scroll through feeds to spot hidden gems or warnings.

Step 7: GMGN Filters

Leverage GMGN's filters for deeper insights: track whale wallets, dex paid (marketing exposure), positions tab (open LPs), KOL/VC involvement, Telegram calls, dev activity, and X calls. A dev sell can be bullish for memes (handing over control) or bearish if it nukes the chart. Low bundle percentages are ideal for fair plays.

Step 8: Pool Selection with Fabrique V2

Once you've got a contract address, plug it into Fabrique V2 to scan all Meteora pools. Sort by volume (24h, 1h, 5m) and prioritize dynamic fees (higher in volatile bins like 100-200). Check participant count—fewer LPs mean you capture more fees. Reference JUP and Meteora scores for organic trading quality (higher = less bot activity).

Step 9: Setting Clear Entry and Exit Rules

Enter on retraces (10-20% pullbacks) in bullish trends. Use spot strategies or mixed curves for aggressive positioning near all-time highs. Exit when volume drops 30-50%, or based on predefined ROI. Adjust ranges wide (+20%/-30%) to reduce impermanent loss risk in meme volatility.

Step 10: Journal Wins and Losses to Learn From

Keep a private journal (Discord, Telegram, or notes) to review trades. Note what worked, what didn't, and new techniques. This iterative process sharpens your edge over time.

This framework, shared in the MeteoraAG bootcamp, is a game-changer for meme token enthusiasts. Apply it to your next play, but remember: crypto is risky, and no strategy guarantees profits. Stay updated with communities like LP Army for more alpha.

For the full video breakdown, check out the original thread on X.