USELESS Coin has made headlines recently by surging 27.52% in just 24 hours, peaking at $0.2918 before slightly retracing to $0.2819. This remarkable surge has propelled its market cap to approximately $291.79 million, reflecting a 31% increase. Trading volume has also seen a significant boost, rising by 34.62% to reach $25.44 million, indicating fresh capital is entering the market. The question arises: is this increase driven by genuine interest from informed investors or merely a speculative pump?
Behind the scenes, the dynamics concerning the top holders of USELESS Coin have shifted notably. Data from Nansen reveals that the Top 100 Addresses have collectively increased their holdings by 38% to 529 million tokens, now encompassing 52.96% of the total supply. Such actions by major stakeholders typically indicate a strong confidence in the asset’s future performance, as they anticipate further price appreciation. In line with this accumulation, there has been a significant decline in the supply on exchanges, with exchange balances dropping by 55.06%.
This leaves a mere 48.9 million tokens available on trading platforms, or just 4.89% of the total supply. This trend reflects bullish sentiment as investors opt to secure their assets in cold storage or private wallets, often a precursor to upward price movement due to a supply crunch. However, the derivatives market presents mixed signals. Despite the price gain, the Long/Short Ratio remains below 1, indicating a higher number of traders are shorting than going long.
This suggests that investors may be betting on a price downturn, even as open interest in derivatives surged by 228.50%. As the technical indicators show, with the Relative Strength Index (RSI) reaching 89.29, there is an indication of overbought conditions, signaling potential for a correction. Conversely, the MACD still shows strong bullish momentum. Should the shorts gain confidence, a retracement to the $0.239 support level may be on the horizon.