USELESS tumbles 12% after breaching key support as institutions sell
Useless Coin (USELESS) fell more than 12% in 24 hours after breaking an ascending trendline that had held since early January. The memecoin failed to sustain a $0.12 resistance and technical indicators turned bearish: MACD showed weak bearish momentum and the Money Flow Index dropped from 77 to 35, signalling capital outflows. On-chain data showed institutional selling pressure — Wintermute moved ~$131K and Coinbase moved over $500K of USELESS to hot wallets, likely for sale, while Kraken moved ~$194K to cold storage (accumulation). Open interest plunged from $40M to $33M and 24h trading volume fell from $122M to $82M, indicating falling derivatives activity and liquidity. CoinGlass max-pain levels suggest a potential short squeeze if price returns to $0.1242, but a break below $0.1020 could intensify losses. Overall, mixed institutional flows, declining OI and volume, and a breached trendline point to a near-term pause or pullback, though a rally continuation remains possible if buying returns. Keywords: USELESS, memecoin, institutional selling, open interest, trading volume, trendline break.
Bearish
The news points to bearish near-term implications. Key technical support (an ascending trendline) was breached and momentum indicators (MACD, MFI) show capital outflow. Crucially, on-chain flows show significant institutional transfers to hot wallets (Wintermute, Coinbase) consistent with selling, while open interest and spot/derivatives volume dropped sharply — both signs of waning liquidity and reduced speculative leverage. Historical parallels: memecoin rallies often correct sharply when top-side resistance holds and institutions or large wallets begin selling (seen in multiple altcoin cycles in 2021–2022). Short-term, expect increased volatility and downside risk — possible retest of the $0.0696 breakout level or the $0.1020 bull max-pain level if selling intensifies. A short squeeze is possible if price revisits $0.1242, but given current declining OI and volume, such a squeeze is less likely without renewed buying. Long-term impact depends on whether accumulation (e.g., Kraken cold-wallet moves) continues and broader memecoin market sentiment recovers; absent renewed buying or macro tailwinds, the trend could remain under pressure.