Assessing Useless Coin’s 12% price dip below KEY support

ambcryptoPublicado a 2026-01-09Actualizado a 2026-01-09

Resumen

Memecoins are pausing their recent rally, with Useless Coin (USELESS) dropping over 12% in 24 hours. It broke a key ascending trendline support, and technical indicators like the Money Flow Index show capital outflow. On-chain data reveals institutions like Wintermute and Coinbase moved over $600K worth of tokens to hot wallets, likely for selling, though Kraken accumulated. Open Interest fell sharply from $40M to $33M, and trading volume dropped from $122M to $82M. If the decline continues, USELESS may retest $0.069. A short squeeze could occur at $0.1242, but breaking below $0.1020 may intensify losses. The rally could be over or just pausing.

Memecoins appear to be pausing their rally that began earlier this year.

For example, Useless Coin [USELESS] has dropped more than 12% in the past 24 hours, with its price still trending downward at the time of writing.

USELESS Coin breaks trendline support

The price action charts showed that USELESS broke an ascending trendline support that had been in place since the start of this month. The first week of January 2026 saw the memecoin reach $0.12, but bulls were unable to break past this level.

The MACD was bearish over the past two days, though its momentum was weak. Moreover, the Money Flow Index (MFI) had also declined from a peak of 77 to 35 at press time.

This indicated capital was flowing out of the token.

In case the decline continues, the price could retest the breakout level at $0.06958 of the range that ignited this rally. However, a resurgence of bulls could invalidate such an undertaking.

The decline was not only dependent on a technical breakdown; on-chain data also supported this trend.

Institutions offload the memecoin

As per on-chain data from Solscan, institutions were offloading their tokens. Wintermute and Coinbase were moving their USELESS coins to the hot wallet, potentially for selling.

Wintermute moved more than $131K worth of the tokens, while Coinbase moved over $500K in capital. In total, more than $600K in USELESS was ready for selling.

However, this was not the case for the Kraken exchange. The exchange moved more than $194K to their cold wallet, indicating accumulation.

As a result, the institutional activity showed mixed sentiments, though the selling activity was more impactful on price. In fact, the Long/Short Ratio was at 0.9 as of writing, suggesting more trades, even from retail, were being sold.

A look into volume, OI, and max pain levels!

More data showed why USELESS’s price was declining.

At press time, Open Interest (OI) dropped sharply from $40 million to $33 million within a single day. This decline followed a steady uptrend that had been in place since the 30th of December.

Trading volume mirrored the move, plunging from $122 million to $82 million over the same period.

Meanwhile, the maximum liquidation pain for the memecoin indicated that a short squeeze could occur if the price reached $0.1242 again.

On the other hand, the decline could be intensified if the price broke below $0.1020. This was the max pain level for bulls.

Altogether, the rally could be over, indicating a seasonal tendency where cryptos start the year with a surge.

Conversely, it could be a pause before the price rally continuation, especially now that memecoins have added over $8 billion to their capitalization.

Final Thoughts

USELESS crashes 12% amid a technical breakdown, but this could be a temporary pause.
Institutions offloading, volume and OI declining, and shorts contributed to the downside movement.

Preguntas relacionadas

QWhat was the percentage drop in Useless Coin's price in the past 24 hours and what key support level did it break?

AUseless Coin's price by more than 12% in the past 24 hours, breaking an ascending trendline support that had been in place since the start of the month.

QWhich two specific institutions were offloading their USELESS tokens according to on-chain data from Solscan?

AAccording to on-chain data from Solscan, Wintermute and Coinbase were offloading their USELESS tokens.

QWhat did the sharp decline in Open Interest (OI) and Trading Volume indicate for USELESS?

AThe sharp decline in Open Interest (OI) from $40 million to $33 million and the plunge in Trading Volume from $122 million to $82 million indicated a loss of market interest and participation, contributing to the price decline.

QAt what price level could a short squeeze occur for USELESS, and at what level could the decline intensify for bulls?

AA short squeeze could occur if the price reached $0.1242 again. The decline could be intensified if the price broke below $0.1020, which was the max pain level for bulls.

QWhat does the article suggest are the two possible scenarios for the future of the USELESS price rally?

AThe article suggests that the rally could be over, indicating a seasonal tendency, or it could just be a temporary pause before the price rally continuation.

Lecturas Relacionadas

STAR 50 Soars 10.73%, Why Did A-Shares Stage a "V-Shaped Reversal"?

After a prolonged decline, the Chinese A-share market staged a strong rally on July 21. The STAR 50 index surged 10.73%, its largest single-day gain in nearly a year, leading a broad-based "V-shaped" reversal. The Shanghai Composite Index rose 1.79%, the Shenzhen Component Index gained 4.81%, and the ChiNext Index jumped 7.05%. Total market turnover reached 2.97 trillion yuan, an increase of 256.1 billion yuan from the previous session, with over 3,100 stocks advancing. The semiconductor sector spearheaded the rebound, with related ETFs posting significant gains. Analysts attribute the surge to three converging factors. First, coordinated capital inflows from "national team" institutions, insurance funds, listed company buybacks, and fund house self-purchases have bolstered market liquidity and confidence. Second, supportive policy signals, including commitments from regulators to ensure stable market operations, provided a favorable backdrop. Third, a stabilization and recovery in overseas markets, notably South Korea, created a positive external environment. Institutions suggest the most severe panic selling phase for the tech sector has likely passed, following a significant digestion of crowded positions and leveraged funds. While short-term volatility may persist, the medium to long-term outlook remains underpinned by enduring trends like AI computing demand expansion and semiconductor localization. The market's focus now shifts to the sustainability of supportive fund flows, earnings reports, and upcoming catalysts from the global AI industry chain.

marsbitHace 31 min(s)

STAR 50 Soars 10.73%, Why Did A-Shares Stage a "V-Shaped Reversal"?

marsbitHace 31 min(s)

U.S. Tech Momentum Stocks Post Largest Single-Day Gain Ever, But Is the Plunge Over?

US tech momentum stocks staged a sharp rebound on Tuesday (July 21st). Morgan Stanley's TMT Momentum Factor surged over 12%, marking its largest single-day gain on record, exceeding even peaks from the 2000 dot-com bubble. Key momentum indices from Goldman Sachs also posted their strongest daily performances in years. The rally was led by semiconductors, with the Philadelphia Semiconductor Index jumping 4.6%. This rebound followed three consecutive down days and a cumulative 33% plunge in momentum stocks, one of the steepest drawdowns since the dot-com era. Analysts attribute the surge largely to a short squeeze. Heavy selling had pushed high-beta momentum stocks into deeply oversold territory, forcing many short sellers, particularly in Asia, to cover their positions, creating a self-reinforcing buying spiral. However, the rebound's internals appear weak. Trading volume was notably low, and advancing stocks still lagged decliners on the S&P 500, indicating a narrow, concentrated rally rather than broad market participation. Diverging views emerge on the outlook. BTIG warns the bounce has hit key resistance and recommends selling into strength, citing extreme volatility and historical parallels to past market tops. Conversely, Goldman Sachs and UBS believe the momentum unwind is nearing its end, suggesting it may be time to gradually add exposure, as positioning has been significantly reduced. They caution, however, that high volatility warrants a measured approach, potentially using defined-risk strategies. The upcoming earnings season, particularly reports from major tech firms like Alphabet, is seen as a critical test for the rally's sustainability. Simultaneously, bond markets flashed a warning, with yields rising partly due to spiking oil prices. Analysts note that if long-term Treasury yields break decisively higher, it could pose a significant headwind for equities, especially growth stocks.

marsbitHace 38 min(s)

U.S. Tech Momentum Stocks Post Largest Single-Day Gain Ever, But Is the Plunge Over?

marsbitHace 38 min(s)

U.S. Tech Momentum Stocks Record Largest Single-Day Gain Ever, but Has the Rout Ended?

U.S. tech momentum stocks staged a dramatic rebound on Tuesday, July 21st. Key momentum indices like the Morgan Stanley TMT Momentum Factor and Goldman Sachs' High Beta Momentum Long Index posted historic or near-historic single-day gains, fueled largely by semiconductor stocks. This sharp rally followed a severe three-day sell-off that saw momentum stocks plunge 33%, marking one of the steepest pullbacks since the dot-com bubble. Analysts attribute the bounce primarily to a short squeeze, as forced covering from over-leveraged traders, particularly in Asia, created a buying spiral. However, the rally's health is questioned due to weak market breadth—overall trading volume was low, and decliners outnumbered advancers in the S&P 500 despite the index's gain—suggesting a narrow, concentrated surge rather than broad recovery. Opinions on the sustainability diverge. BTIG strategists warn the rebound has hit key resistance levels, citing extreme volatility and historic stock dispersion as signs of an ongoing broader correction, and recommend selling into strength. Conversely, Goldman Sachs and UBS view the aggressive momentum unwinding as nearing its end, noting reduced positioning and a lack of new fundamental catalysts. They suggest the sell-off presents a selective opportunity to add exposure, albeit cautiously and gradually using defined-risk strategies. The immediate trajectory hinges on the ongoing earnings season, with market focus on Alphabet's capital expenditure guidance for AI investment clarity. Meanwhile, bond markets present a risk, with rising Treasury yields—potentially heading toward 5.5%—and widening credit spreads for mega-cap tech companies posing a threat to equity valuations. The combination of technical factors, earnings results, and macro conditions leaves the durability of the rebound in doubt.

链捕手Hace 40 min(s)

U.S. Tech Momentum Stocks Record Largest Single-Day Gain Ever, but Has the Rout Ended?

链捕手Hace 40 min(s)

Bitcoin flashes 3 macro-bottom signals – But can BTC reach $70K?

The article discusses Bitcoin's recent price movement above $66,000 and a shift in market analysis from focusing on a local bottom to a potential macro-cycle bottom. It cites a crypto analyst noting that BTC has flashed three historical technical signals that previously coincided with major market bottoms in 2015, 2019, and 2022, suggesting the current zone could be a strong long-term accumulation area. However, the article also highlights a significant challenge: despite the price breakout, on-chain data shows a lack of supporting liquidity. Stablecoin dominance is rising while the total stablecoin market cap is shrinking, with capital continuing to leave exchanges. This divergence indicates that while the technical setup is bullish, the rally may struggle to sustain enough momentum for a decisive move into the $70,000 region without an influx of fresh capital.

ambcryptoHace 43 min(s)

Bitcoin flashes 3 macro-bottom signals – But can BTC reach $70K?

ambcryptoHace 43 min(s)

Long-Divided Must Unite, Long-United Must Divide: When L1 Becomes Its Own Rollup, What Is Ethereum's Endgame?

"The Inevitable Cycle: When L1 Becomes Its Own Rollup – What is Ethereum's Endgame?" For years, the Ethereum community grappled with concerns that L2s were fragmenting the ecosystem and eroding L1's value. While L2s provided cheaper execution, they also splintered liquidity and the unified user experience of a single chain. This has prompted a fundamental reassessment of the relationship between L1 and L2. Ethereum's roadmap is evolving. The "Scale" initiative merges L1 and L2 expansion into a holistic framework. L1 itself is advancing with higher gas limits, statelessness, and zkEVM verification, no longer content to be just a low-throughput settlement layer. Consequently, the primary value proposition of L2s is shifting from merely providing cheap blockspace to offering L1 cannot easily provide: application-specific optimizations, privacy features, and flexible governance models. L2s are becoming a spectrum of execution environments with varying degrees of security inheritance from Ethereum. A critical challenge in this multi-chain future is interoperability. The vision is to make Ethereum "feel like one chain again." This relies on advancements in native account abstraction (like EIP-7702) and intent-based architectures (Open Intents Framework), where users declare desired outcomes, and solvers handle the complex cross-chain execution. Furthermore, shortening Ethereum's finality time from minutes to seconds is crucial, as it underpins trust between chains for bridges, stablecoins, and cross-chain applications. Perhaps the most provocative idea is that Ethereum L1 itself could become a form of "its own Rollup." As zkEVM and proof systems mature, high-performance nodes could execute transactions and generate validity proofs. Regular validators would then verify these proofs instead of re-executing all transactions. This blurs the traditional L1/L2 hierarchy, making "Rollup" more of a general execution-verification architecture. Native Rollup aims to integrate L2 validation more directly into the Ethereum protocol, allowing L2s to inherit L1's security more fully and move away from reliance on security councils. In the end, L2s are not destined to replace L1 or be made obsolete by it. The likely future is a unified system where diverse execution environments—each optimized for specific use cases like DeFi, gaming, or privacy—coexist. They will share a common foundation of security, liquidity, and verifiable state, seamlessly connected to restore a cohesive user experience. The next phase for Ethereum is not just about scaling through separation, but about intelligently reintegrating what was separated back into a coherent whole.

链捕手Hace 56 min(s)

Long-Divided Must Unite, Long-United Must Divide: When L1 Becomes Its Own Rollup, What Is Ethereum's Endgame?

链捕手Hace 56 min(s)

Trading

Spot