The crypto market performed well over the weekend, closing in the green for both days. Memecoins have been the leading sector for the day, with Useless Coin [USELESS] gaining over 30% in 24 hours.
This rise put USELESS ahead of all top 500 cryptos by market in terms of daily gains.
The trading volume of the memecoin spiked by about 243%, with the volume-to-market-cap ratio pumping to 69% at press time. This figure showed there was enough liquidity.
Apart from volume, what else could have influenced the rally?
What do the metrics say about Useless Coin?
According to on-chain data, USELESS was seeing both intense buying and selling activity. However, it is the bulls that were showing dominance in terms of volume traded.
Most of the buys were averaging over $20K, while the sells were in the region of hundreds or a few thousand. One of the key opinion leaders on the Solana [SOL] blockchain also bought about $100K worth of USELESS.
Source: Stalkchain
One of the most notable selling activities was a $43K sale, which did not impact price movements as much. These showed that actions from whales were mixed.
This was also evident on the Long/Short Ratio chart. The value jumped from 0.91 to 1.01, with Bybit leading with a ratio of 2.26. Binance and OKX followed with ratios above 1.50.
Still, there were exchanges that involved selling. For instance, Gate.io’s activity showed that traders were using the exchange to take profit or to size their positions. Its ratio was at 0.625.
Source: CoinGlass
All the data showed that bulls were in control, but bear traders on Gate.io could be a problem going forward.
Can bulls overcome the $0.05 resistance level?
On the charts, Useless Coin was exhibiting momentum. The momentum indicator was rising with the reading at 0.01, just above the neutral level.
This spike occurred after staying dormant between the $0.029 and $0.036 levels.
The crypto’s Open Interest (OI) was also moving in line with the price. The reading at press time surpassed the $100 million mark as USELESS faced a critical test at $0.05.
Only breaking past this level could set the memecoin on a path toward the $0.07 zone.
Source: USELESS/USDT on TradingView
However, for the memecoin to see a shift in trend, the price had to break above $0.13. This area was a daily resistance zone that has been holding price since mid-November last year.
For such a scenario, it would mean Useless Coin rallying another 168% to flip bullish on a long-term outlook.
That would mean bulls staying active to make this happen; otherwise, Useless Coin is still trading in bear territory.
Final Summary
- USELESS rallies 30% as whales step up their accumulation.
- USELESS price faced a key test at $0.05, with a break past it opening a path toward $0.07.
Source: https://ambcrypto.com/useless-rallies-30-but-can-bulls-break-past-0-05/
