Useless [USELESS], the Solana-based memecoin that positions itself as 'the most honest cryptocurrency' with zero utility, has rallied by almost 80% over the past week. According to reports from AMBCrypto, the memecoin gained 7.2% in the last 24 hours and currently holds a $76.96 million market cap. The token has broken out of a three-month consolidation period near the $0.04 lows and recently managed to break above $0.05. This breakout represents a significant technical development for the small-cap memecoin, with the $76.96 million market cap being relatively small even for a memecoin, suggesting quick gains and even quicker sell-offs can be expected.
As reported by AMBCrypto, user Unipcs on X theorized that USELESS could embark on a parabolic bullish trend following the breakout. The extended consolidation period of 100 days near the $0.04 lows suggests that sellers have become exhausted while buyers have been accumulating. The bullish breakout from this consolidation phase for a small-cap memecoin could drive significant upward momentum, with the FOMO demand potentially driving USELESS higher with hardly any dips along the way as sidelined market participants chase gains across both spot and futures markets. Memecoins, especially smaller ones, tend to run hard without regard for Bitcoin's price trends, which may mean a potential Bitcoin pullback below $80K might not deter USELESS bulls.
According to the analysis from AMBCrypto, a move above $0.13 is needed to flip the swing structure bullishly, which would represent a further 70% price move higher for USELESS. The $0.091-$0.109 golden pocket is identified as a key level worth watching for potential bearish reactions, with Fibonacci retracement levels acting as obstacles on the way to higher prices. Traders face a challenging decision between trusting the breakout following the three-month consolidation or waiting for a long-term trend shift before making investment decisions, as the longer-term price structure has remained bearish despite the recent bullish breakout.
