The Memecoin sector was one of the best performing sectors in crypto last week. Data obtained from Glassnode showed that the market value of the sector increased by 1%1.5%Bitcoin (BTC) outperformed its gains by a comfortable margin.
Useless (USELESS) was one of the strongest short-term uptrends on the market, rising 26% last week. 14.47% has moved in the last 24 hours.
However, market value is only $99.85 million At the time of this writing, that’s hardly the person moving the needle on the memecoin industry.
Other tokens like Memecore (M) with its flash volatility and 15% weekly price jump Pepper (PEPPER) They further contributed to the power of memes. However, this does not prevent USELESS from being a potential trading opportunity.
Should you buy UNUSABLE momentum?
on 1 day chartTechnical indicators were all bullish to varying degrees. A/D has been making higher lows since April but has yet to create new highs. OBV was different and continued to rise despite heavy losses in January and February.
This showed that the relatively small-cap memecoin retained the faith of bullish market participants and could rise further on the back of this demand.
The moving averages were well below the market price and the MFI was at: 73. Both momentum indicators supported the bulls.
However, structurally the price movement continued its long-term downward trend. Current movement so far $0.101 remained within the borders 78.6% withdrawal level $0.109.
A breakout beyond the swing high $0.131 It is necessary to change the long-term structure to a downward trend.
Investors’ call to action – Sell
The recent rise has wiped out the liquidity pocket $0.095. The influx of short liquidations forced market buy orders, which helped push prices higher $0.1.
Increased liquidity supported by stable spot demand could still lead to a BENEFICIAL trend reversal.
We don’t have that moment yet. $0.131 The level is the line the bulls must hold. This being the case, traders and investors may try to profit from the rise and stay on the sidelines, or even short themselves, and the void may be above the swing point on the daily time frame.
Final Summary
- The Memecoin sector saw some capital inflow and USELESS was one of the short-term bullish memes.
- $0.109-0.131 was a very important overhead resistance. If it breaks, the long-term trend will revert to an uptrend.
