The crypto market recently experienced a significant uplift, with memecoins emerging as the undeniable leaders of the rally. At the forefront of this surge was Useless Coin [USELESS], which posted an impressive gain of over 30% in a single day, outperforming the top 500 cryptocurrencies by market cap and capturing the attention of traders worldwide.
On-Chain Dynamics and Bullish Momentum
The remarkable surge in USELESS was underpinned by robust on-chain activity, showcasing intense buying pressure. Trading volume for the memecoin skyrocketed by approximately 243%, pushing its volume-to-market-cap ratio to 69% and indicating substantial liquidity. On-chain data revealed a clear dominance of buyers, with most purchase orders averaging over $20,000, significantly outweighing smaller-value sell orders. Although there were instances of mixed whale activity, including a notable $100,000 buy from a prominent Solana opinion leader, the overall sentiment remained bullish. This was further confirmed by the Long/Short Ratio, which jumped above 1.0, signaling that more traders were betting on price increases, even as some exchanges saw profit-taking.
Charting Resistance and Future Potential
Technically, Useless Coin displayed strong momentum, with its indicator rising above the neutral level after a period of consolidation. The Open Interest (OI) also mirrored the price appreciation, surpassing the $100 million mark as USELESS approached a crucial test at the $0.05 resistance level. A successful breach of this point could pave the way for a rally toward the $0.07 zone. However, for a fundamental shift in its long-term trend from bear to bull, USELESS faces a formidable challenge: breaking above the $0.13 resistance level. This would require an additional rally of approximately 168%, highlighting that while short-term gains are significant, the memecoin remains in bear territory on a broader outlook, requiring sustained bullish activity for a full trend reversal.
