Useless Coin [USELESS] has taken a big hit as the general crypto records a week of bearish advances. The token prices have dropped by more than 10% over the last 24 hours at press time, amid negative on-chain sentiments.
The token is trading below its key EMA and on the verge of breaking below the demand zone at around $0.13.
With the token leveraged position shrinking and significant unmitigated liquidity clusters lying below the current trading price, could the current bearish run be prolonged?
Useless Coin faces mounting selling pressure
Useless Coin has followed the bearish trend witnessed across the majority of altcoins as they reap from the recent unchanged FOMC rates this week.
The token has since recorded significant bearish advances to test the current demand zone that sits between $0.125 and $0.145 as negative on-chain sentiment reinforces concerns about demand.
At the time of writing, the token was trading below all its key Exponential Moving Averages (EMAs) on the daily chart, leaving the short-term technical structure also tilted toward sellers. These EMAs could act as overhead resistance if the token attempts a recovery.
But with buyers having defended the zone on several occasions, this time it could follow the same trajectory. Notably, buyers have started to show up on short time frames.
Shrinking leveraged positions signals reduced volatility
On the derivatives, the token’s Open Interest has shrunk to just $32 million as of writing. This points to declining leveraged positions as traders and investors scale back their exposure as uncertainty increases.
At the same time, an unmitigated liquidity cluster worth $586K lies around 0.112. This highlights the price level as a key target for the network sellers before further bullish advances can be resumed.
In the past, similar zones acted as magnets to Useless’ price action. Moreover, the chances of the same repeating still remain high.
Can USELESS avoid further bearish push?
USELESS remains vulnerable while it trades below its key EMAs and tests the demand zone between $0.125 and $0.145. A successful defense could provide a base for recovery, particularly if broader market sentiment improves.
However, a decisive breakdown below $0.13 would strengthen the bearish outlook. Without renewed buying pressure, sellers could retain control and extend the decline.
As it stands, the $0.13 zone is the level to watch. Its ability to attract buyers could determine whether USELESS stabilizes or enters another phase of losses.
Final Summary
- USELESS has dropped by more than 10% in the last 24 hours as negative on-chain sentiment and broader market weakness weigh on its price.
- The network’s shrinking leveraged positions add to uncertainty as the token approaches the $0.13 demand zone, where a breakdown could expose it to further losses.