In Article 1, we looked at why money flow matters in memecoins. Now, we focus on two of its most reliable and visible signals: volume and liquidity.
These are the first metrics you should check before buying any meme coin. They show whether real capital is entering a token or if you’re looking at manufactured hype.
Why Volume and Liquidity Matter More Than Price
Price alone can be misleading; therefore, we have to understand why volume and liquidity matter. A coin might be up 40% in an hour, but if that move happened on thin liquidity and a handful of small buys, the pump will likely fade quickly.
On the flip side, a token with a flat price but steadily rising volume and liquidity is often building the foundation for a bigger move.
- Volume shows how much value is being traded in and out of a token.
- Liquidity shows how much capital is available in the pool to handle buys and sells without big slippage.
Together, they answer:
- Is there real buying interest?
- Can the market handle larger trades?
- Is capital flowing in consistently or only in short bursts?
Reading Volume Like a Trader
When you open a token in MevX, start with the top right corner. Instead of only looking at the 24-hour total, analyze patterns and context.
1. Compare Volume to Market Cap
- A $5M market cap token doing $10M in daily volume is extremely active.
- If that same token is doing only $200K in volume, the market is quiet.
2. Watch for Volume Without Price Movement
- Often a sign of accumulation: buyers are entering without pushing price too early.
3. Spot Sudden Spikes in Volume
- An hourly volume jump can be the start of a move—but only if it continues.
Understanding Liquidity
Liquidity determines how easy it is to enter and exit without large price swings.
Key Liquidity Checks
- Liquidity Depth
- Pools under $50K are highly volatile and prone to manipulation.
- Deeper pools allow for healthier, more sustainable moves.
- Liquidity-to-Market Cap Ratio
- Healthy meme coins often have 5–10% of their market cap in liquidity.
- Recent Liquidity Changes
- Look for steady liquidity additions.
- Paired Asset
- USDC or USDT pairs give more stability.
- Volatile pairs like SOL or ETH can hide true liquidity health.
Combining Volume and Liquidity for Better Entries
The best setups usually have:
- Rising, consistent volume over several hours or days
- Stable or increasing liquidity
- Price that hasn’t already run too far
In MevX, confirm this by checking:
- Volume chart—trending upward.
- Liquidity panel—green inflows, no big pulls.
- Wallet feed—multiple new buyers entering during the build-up.
Don’t Ignore Security When Reading Flow
High volume and deep liquidity are good signs, but they don’t matter if the token can rug pull at any moment.
That’s why MevX includes a Security Audit panel on every token.
Before buying, check:
- Mint Authority—should be disabled so no one can mint unlimited tokens.
- Freeze Authority—should be disabled so trading can’t be halted.
- Burnt Supply—see if the supply is locked or partially burned.
- Top Holder Concentration—if the top 10 wallets hold too much, risk increases.
MevX flags these issues automatically. You don’t have to open 10 tabs for a meme coin anymore.
Example: A token may show rising volume and liquidity, but if the Mint Authority is still active, the creator could mint more supply and dump, instantly killing the chart.
Conclusion
Volume and liquidity are the heartbeat of a token’s money flow.
Price shows what has already happened. Volume, liquidity, and security show what’s happening now.
With MevX, you can see all of these in one dashboard, making it easier to spot when real money is entering and when to step aside.
In the next article, we’ll move into tracking whales and early buyers—the wallets that often set the tone for an entire meme coin’s run.
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