The memecoin sector has emerged as one of the best-performing segments in cryptocurrency markets over the past week, with 11.5% improvement in market capitalization according to Glassnode data. Useless [USELESS] has been among the strongest performers in this rally, delivering a 26% gain in the past week and an additional 14.47% surge in just 24 hours. Despite its strong performance, Useless maintains a relatively modest market capitalization of $99.85 million at the time of writing, positioning it as a smaller player compared to other memecoin sector contributors like Memecore and Pepe.
Technical analysis on the 1-day chart reveals a predominantly bullish setup for Useless. The A/D indicator has formed higher lows since April without reaching new highs, while the OBV maintains its uptrend despite heavy losses experienced in January and February. The moving averages remain positioned below current market price, and the MFI stands at 73, both indicating favorable momentum conditions for bullish traders. However, the price action maintains a bearish long-term bias, with the current move to $0.101 remaining within the bounds of the 78.6% retracement level at $0.109.
The $0.131 level represents a crucial swing high that bulls must defend to maintain the current bullish momentum. According to the analysis, a breakout above this resistance would be required to flip the long-term structure from bearish to bullish. The recent surge has successfully swept liquidity at the $0.095 level, with short liquidations creating market buy orders that helped push prices past $0.10. This liquidity sweep, combined with steady spot demand, suggests potential for a trend reversal, though the $0.131 level remains the decisive point for determining the overall market direction. The technical structure shows a trendline breakdown setup that could trigger deeper downside movement, with potential correction targets toward $0.071 and $0.06769 if key support levels are breached.
The current market setup presents mixed signals for traders, with technical indicators favoring bullish momentum while structural analysis suggests potential for profit-taking opportunities. The recent surge has created a $0.095 liquidity sweep that could result in trend reversal, though the $0.131 resistance level remains the critical threshold. Market participants are advised to consider taking profits from current bounces while maintaining a cautious stance, with potential for short positioning if the swing high is breached on the daily timeframe. The memecoin sector's overall performance improvement, with 11.5% market capitalization gains, provides a supportive backdrop for continued volatility in individual tokens like Useless. However, broader market conditions suggest potential for correction as the S&P 500 shows signs of trendline breakdown, with institutional players positioning for potential liquidity sweeps and market reversals.
