USELESS coin jumps 27% – Whales are in, but bears aren’t budging – Why?

• USELESS surged 27.52% in 24 hours, touching $0.2918 before retracing slightly.
• The memecoin’s Top addresses increased their supply held to 529 million, accounting for 52.96% of the total supply. 

Useless Coin [USELESS] surged by 27.52% in 24 hours, hitting a new all-time high of $0.2918 before retracing slightly to $0.2819 at the time of writing.

Naturally, this explosive move pushed its market cap to $291.79 million, a 31% increase, while trading volume spiked 34.62% to reach $25.44 million—clear signs of fresh capital inflow.

But what’s fueling this climb: smart money conviction, or just another speculative pump?

USELESS’ top addresses are aggressively accumulating 

Here’s what changed behind the scenes.

Source: Nansen

According to Nansen, the memecoin’s Top 100 Addresses increased their holdings by 38% to 529 million tokens. On the 5th of July, the total supply held by these holders reached a peak of 52.96%. 

Notably, when top holders decide to increase their holdings, it reflects firm conviction in the firm’s prospects. In such cases, they anticipate that the memecoin will continue rising in value. 

Supply crunch loading…

Source: Nansen

Now, pair that with what’s happening on Exchanges.

Exchange Balance dropped 55.06% over the same period, leaving just 48.9 million tokens on trading platforms. That’s only 4.89% of the supply, according to updated balance data.

When activities on Exchanges decline, it reflects strong bullish sentiments as investors keep their assets in cold storage or private wallets.

Historically, such market behavior precedes a decline in sales, resulting in upward pressure on prices. 

Derivatives give mixed signals

What’s notable is that as prices soared, Derivatives heated up as investors entered the market to take strategic positions. 

According to CoinGlass data, the Open Interest (OI) increased by 228.50% to $10.7 million. At the same time, Volume in Derivatives also ticked up 7.14% to $8.72 million, showing traders are actively opening new positions.

Source: CoinGlass

Surprisingly, while OI and Volume surged, the Long/Short Ratio stood at 0.9376, still under 1. That means more traders are shorting than longing—even as the price climbs.

Typically, higher demand for short positions while Open Interest is rising suggests that investors are betting on prices to drop. 

A new high or a pullback?

According to AMBCrypto’s analysis, USELESS surged to a new high as Top holders returned to increase their holdings. 

As a result, the memecoin’s Relative Strength Index (RSI) on the daily chart jumped to 89.29, pushing deep into overbought territory.

While RSI rising to such levels signals increased buyer dominance, it also warns of potential correction as buyers are almost getting exhausted. 

Source: TradingView

That said, MACD readings tell a slightly different story. With a print of 0.05528, the momentum indicator still shows strong bullish energy flowing through the chart.

But if short traders gain confidence and the Long/Short Ratio dips further, a retracement to the $0.239 support range becomes a likely outcome.