Over the past 24 hours, Useless Coin [USELESS] dropped more than 12% at press time. Its daily trading volume also declined, falling 19% to about $28.56 million.
However, the memecoin was in a dilemma as bulls struggled to pump the price even after breaking out of a bear trend.
Bulls break structure, but bears interfere
The daily charts had been in a consistent downtrend since mid-October, when the price traded close to $0.45. However, the price broke the trend during the last week of November and has remained above it ever since.
Despite breaking out, Useless Coin’s bears were holding back the price against further appreciation. Bears were defending the $0.1363 price level, with daily candles at close range.
The sideways movement represented a post-breakout consolidation that could potentially serve as a retest. Successfully holding above the broken resistance would confirm a market structure shift.
The MACD and Cumulative Volume Delta (CVD) readings further evidenced the tussle between USELESS Coin bulls and bears on the charts. At the time of writing, the MACD indicated that bulls dominated the structure.
Source: TradingView
The volume data told a different story. The CVD showed that sellers controlled trading activity during the day. Bulls, meanwhile, reduced their participation as outflows surpassed inflows following the breakout.
Liquidity now appears to be the key factor in determining USELESS’s price direction.
Over $3.85 million in cumulative short liquidation leverage is concentrated at $0.15. This explains why bears are defending the $0.1363 level; they aim to prevent forced liquidations that could trigger a short squeeze.
Source: CoinGlass
On the other hand, more than $2.05 million in buy orders were stacked at $0.098. Short positions of more than 50X leverage were stacked at $0.122. These sell orders hindered the price from breaking out of the range between $0.0925 and $0.1383.
If price were to follow the liquidity concentration, USELESS Coin would most likely head toward $0.15. Otherwise, the price would liquidate clusters below $0.11.
USELESS Coin outflows surge
On the capital inflow side, USELESS was among the most sold memecoins on the Solana blockchain in the past week. Whales and smart money sold more than $233K, making it the third most-sold memecoin.
According to Sun Flow data, PIPPIN and BONK led with $643K and $411K, respectively. This showed a market-wide capital rotation from memecoins to safer assets that were also at a discount. Whale exits could derail the current breakout.
Source: Sun Flow
For the next move of USELESS Coin, traders need to be wary of outflows and seller dominance in volume, even though bulls have broken the price structure.
Final Thoughts
The price of Useless Coin fell by more than 12% because of whale exits and a shift in capital away from memecoins.
USELESS was at a crossroads as the bear market resisted the bulls’ efforts that had led to a breakout.
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