How To Use Dexscreener to Analyse Memecoins (+Make Thousands)

Dexscreener Guide to Identifying Good Memecoins — CryptoBuff

Memecoins can be a wild ride in the crypto world. Some, like Dogecoin (DOGE) and Shiba Inu (SHIB), have experienced explosive growth in the previous crypto bull run back in 2021–2022.

It is predicted that in 2024 there will be another bull run in crypto markets after the bitcoin halving happening on April 21, 2024. But before even the bull run began some meme coins like PEPE, DOGWIF, BONK, and FLOKI has shown significant growth benefiting most investors who bought the coins when they launched.

Investing in meme coins is a high risk since most can become shitcoins or rug pulls in a short time. If you’re interested in meme coins as well as altcoins, as much as we are then from here on out we will talk about how to mitigate risk by applying a couple of simple steps using Dexscreener which can be beneficial for you.

What is Dexscreener?

Dexscreener is a web platform that gets data from various decentralized exchanges (DEXs) across different blockchains such as Ethereum, Solana, and Base. It allows you to track new token launches, view charts, analyze liquidity, analyze market cap, perform technical analysis, and see trading activity for memecoins and other tokens.

Steps to Analysing Memecoins

I know that it is almost useless to use technical analysis for meme coins since the rarely follow the technical analysis strategies. But there are some patterns and things such as fundamental analysis that you can perform using Dexscreener. These steps we’ve listed below will help you identify new memecoins with potential and mitigate the risk of getting into shitcoins that can be rug pulled anytime.

Finding New Memecoins

Sort and Find New Memecoins on Dexscreener — via Dexscreener

It’s true that every day more than over a hundred memecoins and shitcoins get listed or added to the world. However, some of these coins do have the potential to be groundbreaking. Here are the steps you can use to find a newly listed memecoin on Dexscreener.

1. New Pairs: Click on “New Pairs” to see a list of recently launched tokens across all supported blockchains. You can sort this list by age (newest first) to find the latest meme coin launches.
2. Filtering the List: Be cautious, as not all new coins are legitimate. To narrow down your search and focus on potentially more established coins, you can use the following filters:

• Age: Filter by a specific timeframe (e.g., 6–24 hours) to find memecoins that have been around for a little while and might have some traction.
• Liquidity: Look for coins with a higher liquidity amount. This indicates a more established coin with more money available for trading.
• Platform: If you prefer a specific blockchain like Solana, you can filter by the platform to see only meme coins launched on that chain.

Analyzing the Charts

tert chart on Dexscreen er— via Dexscreener

Once you’ve identified a potentially interesting memecoin, take a closer look at its chart on Dexscreener. Here are some key things to consider:

• Liquidity Lock: Look for a green lock symbol next to the liquidity on the chart. This indicates that the liquidity is locked, preventing developers from rug-pulling the coin (suddenly selling all their coins and crashing the price).
• Volume: Healthy volume is crucial. Look for coins with increasing or consistent volume bars at the bottom of the chart. This suggests a growing interest in the coin.
• Price Trend: Avoid coins with a sustained downward price trend. Ideally, you want to see a coin that’s either consolidating or experiencing an upward trend.
• Technical Analysis: While not covered in detail in the video, some users leverage technical analysis indicators on the chart to identify potential entry and exit points.

Additional Research

Audit of Sonic Wif Hat Memecoin — via AnalytixAudit

Dexscreener provides a starting point, but further research is vital before investing. Look for the following:

• Whitepaper: Does the coin have a well-defined purpose and roadmap? Then most likely it is going to be a good project. For instance, take Shibainu, they had a whitepaper and they are still around and fighting to go up.
• Audit: A crypto audit is a detailed report on the project, which only a few memecoins hold. This can state issues in the project and give an overall score for the project which can build confidence. Having an audit and receiving a good score is a good signal, especially for a memecoin project.
• Team: Who is behind the project? Are they transparent? Look at the team of developers who are involved in the project. Research the team’s experience and reputation. You can use Google, LinkedIn, or other social media platforms for this.
• Community: Check out the coin’s social media channels and online communities to gauge sentiment and engagement. Usually, in good projects the community is always engaging, with each other and the developers in social media such as X and Telegram.

Tips to Finding a Good Memecoin Like PEPE or BONK

Unfortunately, there’s no guaranteed formula for finding the next PEPE or BONK. However, by combining Dexscreener analysis with additional research and a healthy dose of caution, you can increase your chances of identifying meme coins with some potential. Here are some additional tips that might be helpful for you.

• Be Patient: Don’t chase every new memecoin that pops up. Take your time, research thoroughly, and wait for an opportunity that aligns with your risk tolerance and investment goals. Don’t always buy during the initial launch.
• Start Small: Memecoins are inherently risky. Only invest a small amount that you can afford to lose completely.
• Diversify: Don’t put all your eggs in one basket. Spread your investments across different memecoins and other cryptocurrencies to mitigate risk. Always, get involved with new projects that have potential like FTM, FIL, KAS, and WILD, so you can keep your investments safe.

Warnings

Memecoin investing carries significant risks. Here are some crucial warnings to consider:

• Volatility: Memecoin prices can fluctuate wildly, leading to substantial losses. Especially, on Solana chain you can see that once a memecoin goes up for a bit, it goes down in a matter of seconds due to sellers who take large amounts of profits.
• Scams (Rugpulls): Many memecoins are scams designed to exploit unsuspecting investors. Be extra cautious and do your research before investing.

The Conclusion

Dexscreener can be a helpful tool for analyzing memecoins, but it’s not a magic formula for making thousands. Memecoin investing is highly speculative and carries significant risk. So, it’s important to Do Your Own Research (DYOR) before investing in cryptocurrency, especially in high-risk projects like memecoins.

Disclaimer

This article does not aim to provide investment advice. This information does not entail any responsibility or liability on the part of the author or the publication for any investments, profits, or losses you may make. Before deciding on any investment, readers are urged to conduct their own research and due diligence or to speak with a licensed financial advisor or broker. Only general informational and educational purposes are intended for this content. Despite the author’s best efforts to ensure accuracy, the information in the article cannot be trusted. The tokens and cryptocurrencies covered in this article might be owned by the author.