USELESS Meme Coin Pumps 30%: Sustainable Rally or Flash in the Pan?

USELESS Coin's Price Surge: A Technical Analysis

Useless Coin (USELESS) is attempting a recovery, marked by a 31% jump in the last 24 hours. This price action suggests short-term bullish sentiment. However, underlying factors indicate caution is warranted.

Lack of Sustained Support

Despite the recent increase, inflows remain weak, suggesting investors are hesitant. Technical indicators present a mixed outlook.

The Moving Average Convergence Divergence (MACD) is approaching a potential bullish crossover. A cross above the signal line would confirm positive momentum, potentially attracting new buyers and helping USELESS test higher resistance levels. This signal indicates that external factors are supporting the altcoin.

Weak Capital Inflow

Conversely, the Chaikin Money Flow (CMF) indicator points to underlying weakness. The CMF remains below the zero line, indicating limited investor participation and weak capital inflows.

This lack of fresh capital could hinder long-term growth, exposing the altcoin to stagnation without sustained buying pressure. USELESS might struggle to maintain its momentum unless broader market conditions improve considerably.

Price Action and Potential Scenarios

Currently, USELESS is trading at $0.208, having established $0.185 as a support level following the surge. The next key resistance level is at $0.230.

Based on current technicals, overcoming this resistance may prove challenging. If investor sentiment doesn't improve, the price will likely consolidate below $0.230.

However, if market conditions become more favorable, USELESS could break above $0.230 and establish it as a new support level. This would pave the way for a potential rise to $0.292, negating the bearish outlook and strengthening bullish momentum.