Useless Coin [USELESS] went against today’s broader cryptocurrency market decline, gaining 12.56%with rising trading activity.
Particularly, its spot trading volume surged 19.04% to $19.41 million, highlighting stronger market participation during the price rally.
The elevated participation therefore accompanied renewed buying activity, which helped the memecoin outperform the broader market despite the ongoing weakness.
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Futures traders increase their exposure to USELESS
Besides the heightened spot market activity, USELESS also registered a sharp surge in derivatives activity as investors expanded their positions.
To be specific, the derivatives trading volume increased 13.76% to $147.39 million, showing increased participation across the futures markets.
More importantly, Open Interest also climbed 17.92% to $79.97 million, which highlighted fresh capital entering outstanding derivatives positions.
This simultaneous expansion in both price and Open Interest pointed toward an improving speculative demand during the rally.
The expansion in fact suggested market participants were opening new positions instead of simply closing existing contracts.
Here, it is important to note that the rising OI did not solely establish whether buyers or sellers controlled the futures market.
Furthermore, the stronger trading activity also introduced concerns about how leveraged positions had reacted to the sudden price recovery.
Short sellers face mounting liquidation pressure
As the memecoin pushed higher, short sellers encountered greater pressure, with liquidations reflecting the impact of the rally.
According to CoinGlass, short liquidations hit $73.36K, which considerably exceeded the $8.91K registered across long positions.
This imbalance highlighted that the rally had forced significantly more bearish positions out of the market.
Specifically, OKX accounted for $31.36K in short liquidations, followed by Binance with $19.05K.
Additionally, Bybit contributed another $15.35K, validating the wider pattern of losses among investors betting against the memecoin.
The long liquidations meanwhile remained relatively limited, highlighting the stronger pressure on the bearish positions during 24-hour period of reporting time.
Even though the short liquidations accompanied the appreciation, persistent buying pressure would remain necessary for further gains.
Can USELESS sustain its descending channel breakout?
On the daily technical structure, USELESS decisively broke above its descending channel following a recovery from the $0.1400 support area, challenging its previous bearish structure.
Interestingly, this breakout reflected an important technical development after weeks of lower highs and consistent selling pressure.
More importantly, the Parabolic SAR indicator remained below the prevailing market value, with its recent reading at $0.13890, reinforcing the bullish technical reversal.
Furthermore, the MACD histogram flipped to the positive territory at 0.00244, as the MACD line crossed above its signal line, supporting the bullish bias.
Following the descending channel breakout on the daily chart, the $0.2000 level emerged as the next resistance level, with $0.2500 representing the next upside target.
A strong decisive move above this resistance region could therefore reinforce the recovery towards $0.2500, so long as buyers maintain control.
However, renewed selling could alternatively push the memecoin toward the $0.1400 support, potentially invalidating the developing bullish technical structure.
Final Summary
- USELESS gained 12.56% as rising trading activity accompanied its recovery despite broader crypto market weakness.
- The descending channel breakout reinforced the recovery attempts, with $0.20 emerging as the next target.
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