Spotting the local top with bearish divergence.
A quick tip for one-sided LP positions on Meteora: when price makes higher highs but RSI makes lower highs, momentum is dying. That's your entry signal.
Quick tip: spotting the local top with bearish divergence for one-sided positions on @MeteoraAG.
LPing fresh tokens is a game of timing, and one of my favorite ways to spot a local top is watching for bearish divergence on the RSI.
The logic
The price keeps pushing for higher highs, everything looks bullish on the surface. But look at your RSI. If the RSI is making lower highs while the price climbs, the momentum is dying. The buyers are exhausted.
Why this is your LP signal
When you see that final price spike coupled with the RSI hitting a lower peak, you've found a prime spot to open a one-sided $SOL pool.
- The trend is overextended
- Price is likely to drop
Don't just guess where the top is. Let the momentum tell you when it's time to stop chasing and start farming.