USELESS surges 15% as buyers return – But 2 risks could interrupt recovery
USELESS rallied following its LONG launch announcement, but mixed market signals left its recovery uncertain.
Useless Coin [USELESS] rallied 15% following the announcement of its LONG platform launch, boosting overall trading volume in the memecoin space.
The announcement highlighted the token’s launch on LONG, drawing attention to its connection with USDG.
During the recovery, its trading volume rose 13.41% to $10.65 million, signifying a moderate increase in market participation. The growing speculative activity raised questions about whether buyers could sustain the recovery beyond the initial excitement.
Open Interest jumps as traders increase exposure
Beyond the spot activity, trading in derivatives was also strengthened, with traders increasing their exposure to USELESS.
Notably, the memecoin’s Open Interest rose 18.08% to $71.46 million, reflecting growing outstanding futures positions, according to data from CoinGlass.
The increase accompanied USELESS’s double-digit recovery, highlighting renewed interest in leveraged trading.
Additionally, the positive Open Interest figures also implied that new buying and selling orders were placed as the rally unfolded.
Here, it is also important to note that the expansion also introduced liquidation risks, especially in case of a sudden price reversal.
Meanwhile, the exchange flow data, on the other hand, revealed another development that could complicate price further gains.
USELESS spot netflows remain positive as inflows persist
Even with the expanding market interest, USELESS Spot Netflows remained positive, highlighting continued exchange deposits.
At the time of writing, on November 4, the Spot Netflows had reached $232.46K, which reflected greater inflows than outflows, potentially increasing the supply available for selling.
Also noteworthy, the spot inflows coincided with the memecoin’s double-digit rally, raising concerns about potential profit-taking among the market participants.
More importantly, while exchange deposits did not necessarily suggest immediate selling, they introduced additional pressure on the prevailing price recovery.
Furthermore, persistent inflows could likely weaken buying efforts, especially in the market participants traders begin realizing profits following the recent price expansion.
Besides, with exchange activity presenting a potential obstacle, USELESS faced another challenge near overhead resistance.
Can USELESS extend its recovery beyond resistance?
On the daily timeframe chart, USELESS rebounded from the $0.1187 support level after buyers stepped in to counter further declines.
The price reversal followed a prolonged downtrend, even though the daily chart continued to reflect broader bearish pressure.
Importantly, the memecoin’s RSI indicator climbed to 43.53, crossing above its signal average of 40.97.
This crossover implied improving buying strength, even as the indicator remained below 50, indicating that bullish conviction was yet to gain momentum.
Additionally, the Bollinger Bands highlighted Useless Coin recovering from the lower band around $0.1170 toward the middle band.
This movement implied fading selling pressure, but the price was yet to establish a stronger bullish trend.
Final Summary
- USELESS surged 15% as the LONG platform announcement attracted renewed trading interest.
- Rising Open Interest supported the recovery, but exchange inflows raised concerns about selling pressure.
