Investors assess Useless Coin's price has fallen 12% below key support.

USELESS Coin dropped more than 12% in 24 hours after breaking through the ascending trendline support, indicating that memecoin's upward momentum is slowing down and the risk of a short-term correction is increasing.

This development stems not only from technical signals, on-chain data also indicates institutional money shifting in a direction that could put selling pressure. However, a "pause" scenario before the uptrend resumes still exists if buying pressure returns.

USELESS Coin breaks through trendline support and weakens momentum.

USELESS has broken through the uptrend support line formed since the beginning of the month, while momentum and money flow indicators are declining, making the short-term trend lean towards a correction.

On the price chart, USELESS lost the upward trendline that had held its momentum since the beginning of this month. In the first week of January 2026, memecoin briefly reached $0.12, but buyers were unable to break through this level.

The MACD has turned bearish for the past two days, although the downward momentum hasn't been too strong. Simultaneously, the Money Flow Index (MFI) has fallen from its peak of 77 to 35 at the time of recording, reflecting Capital outflows from the Token.

If the downward trend continues, the price could retest the $0.06958 "breakout" zone of the range that triggered the previous rally. Conversely, if buying pressure returns strong enough, the scenario of a sharp decline could be invalidated.

Notably, the downward pressure isn't solely driven by technical signals. on-chain data also reinforces the view that selling pressure is increasing across several large address clusters.

Organizations moving USELESS to hot wallets is creating selling pressure.

on-chain data shows that some organizations are moving USELESS to hot wallets, generally understood as a preparation for selling, although some exchanges are still moving to Cold Storage as a way of accumulating.

According to on-chain data from Solscan, Wintermute and Coinbase have moved USELESS to hot wallets, implying the potential for sales. Wintermute moved over $131,000 worth of Token, while Coinbase moved over $500,000. In total, over $600,000 worth of USELESS is available for sale.

However, Kraken transferred over $194,000 into Cold Storage, which is typically XEM as a sign of accumulation or long-term storage. Therefore, this institutional behavior reflects a contradictory sentiment.

However, selling activity had a clearer impact on the price. The Longing/ Short Ratio was at 0.9 at the time of recording, indicating that short positions were slightly higher, including transactions from retail investors.

Decreased open interest and volume confirm weakening demand.

A sharp drop in open interest and volume within a single day indicates that Derivative money flows and trading enthusiasm are cooling down, often accompanying a period of correction or accumulation.

At the time of recording, Open Interest (OI) plummeted from $40 million to $33 million in just one day. This decline followed a steady upward trend since December 30th, indicating a withdrawal of participation in the contract market.

Volume also moved in the same direction, decreasing from $122 million to $82 million during the same period. When prices fall accompanied by a sharp drop in open interest (OI) and Volume , the common scenario is that positions are closed and money flows wait for clearer signals.

The "max pain" levels suggest risk zones and Short squeeze scenarios.

The “max pain” levels indicate a greater risk of a sharp decline if the level breaks below $0.1020, while a return to $0.1242 could trigger a Short squeeze.

The “maximum liquidation pain” data for this memecoin suggests a potential Short squeeze if the price retraces to $0.1242. As the price approaches this area, putting pressure on many short positions to be liquidated, forced buying could drive volatility up sharply.

Conversely, the downward momentum could be amplified if the price breaks below $0.1020, described as the “max pain” level for buyers. A breach of this zone typically puts pressure on Longing positions to cut losses or liquidate, increasing downward volatility.

The memecoin rally may be slowing down or just taking a temporary break.

USELESS is showing signs of ending its short-term seasonal rally at the beginning of the year, but it could still just be a pause if buying pressure returns and memecoin inflows continue to expand.

Overall, the rally may have paused or ended, consistent with a seasonal trend where the crypto market typically starts the year with a surge followed by a slowdown.

However, there's also a possibility this is just a "pause" phase before a further increase, especially considering the memecoin group has added over $8 billion in market Capital . What needs to be monitored is the price reaction at key support levels, along with the developments in open interest, Volume , and on-chain cash flow in the following sessions.

Frequently Asked Questions

Why did USELESS Coin drop by more than 12% in 24 hours?

Prices fell sharply after breaking through the ascending trendline support, accompanied by weakening signals from the MACD and MFI, indicating a significant drop in capital outflow. on-chain data also showed some institutions moving Token to hot wallets, potentially adding further selling pressure.

What price levels are noteworthy for USELESS in the short term?

If the price continues to fall, the retest zone mentioned is $0.06958. In Derivative, a return to $0.1242 could trigger a Short squeeze, while a break below $0.1020 could lead to a sharper decline due to pressure on long positions.

What does the decrease in open interest (OI) and trading volume indicate?

Open interest (OI) decreased from $40 million to $33 million, and trading volume declined from $122 million to $82 million, indicating a cooling of money flow and market participation. This typically occurs when traders close positions, await new signals, or when an uptrend temporarily loses momentum.