Small cap, big gains – Decoding the FOMO behind USELESS’s recent 70% surge

ambcrypto.com 1 h

Analytics

Useless [$USELESS], the Solana-based memecoin that pokes fun at conventional utility tokens, has rallied by almost 80% over the past week. This memecoin proudly calls itself “the most honest cryptocurrency” and brags of having zero purpose and 100% uselessness.

It rallied by 7.2% in the last 24 hours and had a $76.96 million market cap at the time of writing. This figure is relatively small though, even for a memecoin. Hence, quick gains and even quicker sell-offs can be expected.

$USELESS vertical rally expectations

In a post on X, user Unipcs, or the Bonk Guy, theorized that $USELESS could embark on a silly bullish trend. It has 100 days of consolidation near the $0.04 lows and finally managed to break out above $0.05 recently.

A long consolidation implies sellers are exhausted, and buyers have been accumulating. A bullish breakout from this consolidation phase, for a small-cap memecoin, could make for a parabolic run.

The sidelined market participants would be forced to chase the gains across both the spot and futures markets. This FOMO demand can drive $USELESS higher with hardly any dips along the way, he argued.

Memecoins, especially the smaller ones, tend to run hard without regard for Bitcoin’s [$BTC] price trends. Therefore, there may be a possibility that a $BTC pullback below $80K might not deter $USELESS bulls.

A word of caution

At the same time that the memecoin embarks on an upward breakout, traders and investors must remain skeptical. The longer-term price structure has remained bearish. A move above $0.13 is needed to flip the swing structure bullishly.

This would represent a further 70% $USELESS price move higher. On the way, the Fibonacci retracement levels will act as obstacles. The $0.091-$0.109 golden pocket is worth watching here, in particular, for a bearish reaction.

Traders have a tough choice. Do they trust the breakout following the 3-month consolidation, or should they wait for a long-term trend shift before looking to buy?

Final Summary

The satirically honest Useless coin has the crowd’s confidence for now.
It remains to be seen if this is enough to break the bearish price swing structure.