Meteora (MET) in Bull vs Bear Markets: Winning Strategies

Understanding Bull and Bear Markets in Meteora's History

The Meteora (MET) market, like all cryptocurrency markets, experiences distinct cyclical patterns known as bull and bear markets. Since its launch as Mercurial Finance in 2021 and its rebranding to Meteora culminating in the MET token launch on October 23, 2025, Meteora has undergone several complete market cycles, each offering valuable lessons for traders and investors. A bull market in Meteora is characterized by sustained price appreciation over months or years, often seeing gains of 500-1000% or more, while bear markets typically feature extended downtrends lasting 12-24 months with price declines of 70-90% from peak values.

These dramatic swings are driven by a complex interplay of market psychology, technological developments (such as the launch of DLMM Pools and Dynamic Vaults), regulatory news, and macroeconomic trends. The psychology behind these cycles often follows a predictable pattern: during bull markets, investor euphoria and FOMO (fear of missing out) drive Meteora (MET) prices to unsustainable heights, while bear markets are characterized by pessimism, capitulation, and eventually apathy among market participants.

Looking at Meteora's historical performance, we can identify several major market phases, including the remarkable bull run of January 2025, where Meteora volumes surged by $40 billion in a single month, and the subsequent prolonged bear market following the FTX collapse in late 2022, where Mercurial (the predecessor to Meteora) lost approximately 75% of its value and stakeholder confidence.

Major Bull Markets in Meteora's History

Throughout its trading history, Meteora (MET) has experienced several memorable bull markets that have shaped its trajectory. The most significant of these include:

• January 2025 bull run: Meteora processed $40 billion in volume, accounting for 18% of its cumulative $224 billion, driven by the TRUMP memecoin's initial liquidity pool on Meteora.
• 2021-2022 bull market: Mercurial Finance (predecessor to Meteora) saw rapid adoption and price appreciation before the FTX collapse.

These explosive Meteora price movements were catalyzed by factors such as:

• Institutional adoption: Large liquidity providers and DeFi funds began using Meteora's dynamic AMM pools.
• Favorable regulatory developments: Increased clarity around Solana-based DeFi protocols.
• Increased mainstream awareness and accessibility: Launch of innovative products like Meteora Invent and Presale Vaults.

During these bull phases, Meteora typically displays recognizable price action patterns, including:

• A series of higher highs and higher lows
• Increased trading volume during upward moves
• Price consolidation periods followed by continued uptrends

Market sentiment indicators often show extreme greed readings, with social media mentions of Meteora (MET) increasing by 300-400% compared to bear market periods.

Case studies of successful bull market navigation include:

• Professional traders who implemented strategic profit-taking at predetermined MET price levels.
• Institutions that maintained core Meteora positions while selling a percentage of holdings during price surges.
• Retail investors who adhered to dollar-cost averaging strategies throughout the cycle.

Notable Bear Markets and Corrections in Meteora's Timeline

Meteora's history is also marked by significant downtrends, most notably:

• 2022-2023 bear market: Triggered by macroeconomic pressures, interest rate hikes, and the collapse of major crypto projects like Luna/Terra and FTX, which stranded Mercurial's MER tokens and devastated liquidity.
• Post-TGE volatility (October 2025): The MET token launch features 48% of total supply hitting the market immediately, with zero vesting for community and user allocations, creating potential for immediate Meteora price collapse as airdrop recipients exit.

During these crypto winters, Meteora market behavior follows distinctive patterns:

• Trading volume decreases by 50-70% compared to bull market peaks
• Market volatility initially spikes during capitulation phases before gradually declining
• Investor sentiment shifts from denial to fear, capitulation, and finally apathy
• Exodus of speculative capital and fair-weather participants, leaving primarily long-term believers and value investors in the MET market

Recovery patterns after major price collapses often begin with:

• Prolonged accumulation phases, where Meteora prices trade within a narrow range for several months before establishing a solid base.
• A gradual increase in trading volume and renewed developer activity on the Meteora network.
• A new cycle of price appreciation.

The most valuable lessons from these bearish periods include:

• The importance of maintaining cash reserves to capitalize on deeply discounted Meteora (MET) prices
• Understanding that even the strongest assets can experience 80%+ drawdowns
• Recognizing that bear markets are often when the most significant technological innovations are developed, laying groundwork for the next Meteora bull cycle.

Essential Trading Strategies Across Market Cycles

Successful Meteora (MET) investors employ distinctly different strategies depending on market conditions.

During bull markets, effective risk management approaches include:

• Gradually scaling out of Meteora positions as prices rise
• Taking initial capital off the table after significant MET gains
• Tightening stop-loss levels to protect profits

The most effective Meteora bull market tactics focus on:

• Capitalizing on strong momentum while remaining vigilant for signs of exhaustion
• Participating in emerging narratives and sectors within the Meteora ecosystem
• Maintaining strict position sizing to avoid overexposure despite FOMO pressures

Conversely, Meteora bear market strategies revolve around:

• Defensive positioning with reduced exposure to high-beta assets
• Strategic accumulation of quality Meteora (MET) tokens at deeply discounted valuations
• Generating yield through staking or lending to offset price declines

Successful traders also implement dollar-cost averaging over extended periods rather than attempting to time the exact bottom of Meteora markets.

Perhaps most crucially, emotional discipline becomes paramount throughout Meteora market cycles. This involves:

• Maintaining a trading journal to identify emotional biases
• Establishing clear, predefined entry and exit rules before positions are opened
• Regularly reviewing and adjusting overall strategy while avoiding reactive decisions based on short-term MET price movements

Identifying Transition Points Between Market Cycles

Recognizing the transition between bull and bear markets is among the most valuable skills for Meteora (MET) traders. Key technical indicators that often signal these shifts include:

• The crossing of long-term moving averages like the 50-week and 200-week MAs
• Extended periods of declining trading volumes despite Meteora price increases
• Bearish divergences between price and momentum indicators like RSI or MACD

Fundamental developments frequently precede Meteora cycle changes, including:

• Changes in monetary policy from major central banks
• Shifts in regulatory stance toward cryptocurrencies in key markets
• Major institutional adoption announcements or withdrawals from the Meteora space

Volume analysis provides particularly valuable insights during potential transition periods. Traders should watch for:

• Declining volume during Meteora price advances, which often indicates weakening buying pressure
• Climactic volume spikes during sharp sell-offs, which may signal capitulation and potential bottoming processes

By integrating these various signals, investors can build a framework for Meteora market phase recognition that includes:

• Monitoring on-chain metrics like active addresses and transaction counts
• Tracking sentiment indicators across social media and market surveys
• Observing institutional fund flows into or out of Meteora-related investment vehicles

Conclusion

The study of Meteora (MET) market cycles reveals consistent patterns in psychology and price action despite varying magnitudes and durations. The most valuable lessons include the inevitability of both bull and bear phases and the critical importance of disciplined strategy across all Meteora market conditions.

While these cycles may become less extreme as the Meteora asset matures, understanding historical patterns remains essential for success. Ready to put these insights into practice? Our 'Meteora Trading Complete Guide: From Getting Started to Hands-On Trading' provides actionable strategies for both bull and bear markets, covering risk management, entry/exit timing, and position sizing tailored to each Meteora market phase.

Explore our complete guide to transform your understanding of market cycles into effective Meteora (MET) trading decisions across any market condition.